♦ The Government of India has launched a Central Bank Digital Currency (CBDC)-based Digital Food Currency pilot for Direct Benefit Transfer (DBT) under Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) in Puducherry on 26 February 2026. The introduction of CBDC in the Public Distribution System marks a transformative milestone in India’s food security architecture. 

♦ The initiative marks a significant reform in the delivery of food subsidy through the Public Distribution System (PDS) by integrating the Digital Rupee issued by the Reserve Bank of India into the Direct Benefit Transfer (DBT) framework. Under the pilot project, food subsidy will be credited to identified beneficiaries in the form of programmable Central Bank Digital Currency (CBDC) tokens directly into their CBDC wallets.