Centre launches digital coupons for PDS in Gujarat on pilot basis

In a major development, Home Minister Amit Shah on Sunday launched the first ever Central Bank Digital Currency (CBDC)-based Digital Food Currency pilot in Gujarat. 

Under the CBDC framework, digital coupons generated through the Reserve Bank of India will be credited directly to beneficiaries as programmable digital currency (e₹). Beneficiaries can redeem their entitled quantity of foodgrains at ration shops using CBDC coupon or voucher codes.  

Food Minister Pralhad Joshi while addressing the launch event said that the new system will address challenges related to biometric authentication and e-POS operational issues while ensuring secure, traceable and real-time transactions. 

The pilot will soon be expanded to the Union Territories of Chandigarh, Puducherry and Dadra and Nagar Haveli and Daman and Diu. 

Though the government does not say so, a section of the experts have long been advocating use of e-vouchers in PDS in place of physical grain distribution through ration shops as an option to check burgeoning food subsidies and check open-ended procurement of grains.