Shivraj Singh Chouhan launches Chandigarh CBDC for PMGKAY food subsidies
Chandigarh just made history by rolling out a digital rupee system for food subsidies.
Thanks to the new setup launched by Union minister for agriculture, farmers' welfare and rural development Shivraj Singh Chouhan under PMGKAY, eligible beneficiaries will get their food subsidy straight into a central-bank digital currency (CBDC) wallet.
They can use this wallet to buy grains from authorized shops: secure and traceable real-time digital payments.
CBDC restricts subsidy use to food
This CBDC system means subsidies go directly to those who need them and can only be spent on food, cutting down on misuse.
Plus, it gives families more choice. They're not limited to just wheat and rice but can also buy pulses and other essentials.
Chouhan called it a big step toward making welfare schemes more citizen-focused, but he also pointed out that addressing operational challenges early is key.