Chandigarh, August 15, 2026: The government has taken a new step towards digitising welfare delivery with the launch of a Central Bank Digital Currency (CBDC)-based Direct Benefit Transfer (DBT) system for food subsidies under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) in Chandigarh.
Union Agriculture Minister Shivraj Singh Chouhan launched the initiative on Friday. Under the new system, eligible beneficiaries will receive their food subsidy directly in Digital Rupee (e₹) wallets, replacing the conventional bank-account-based transfer mechanism.
The digital subsidy is designed to be purpose-bound, meaning beneficiaries can use it to purchase foodgrains from authorised or empanelled merchants. The system is expected to make subsidy transactions more transparent, traceable and secure while reducing the scope for leakages and misuse.
The rollout also covers Dadra & Nagar Haveli, making the two Union Territories the first to adopt the CBDC-based model for PMGKAY food subsidy transfers. The Chandigarh launch is being viewed as a pilot for potentially expanding digital-currency-based welfare payments to other parts of the country.
The initiative marks a significant intersection of digital finance and social welfare, with the government seeking to use the Digital Rupee to make public-benefit transfers more targeted, accountable and efficient.
