CBDC-Based Food Subsidy Distribution Pilot under PMGKAY to be Launched in Puducherry

• First-of-its-kind use of programmable Central Bank Digital Currency (CBDC) for food subsidy delivery under PMGKAY, launched in Puducherry on 26 February 2026.
• Marks convergence of three flagships: PMGKAY (food security), e₹ (digital rupee) and DBT/PFMS rails — a high-yield intersection for GS-II (governance) and GS-III (economy, food security, digital infra).
• Pilot uses purpose-bound, programmable tokens redeemable only at Fair Price Shops (FPS) — operationalising the "smart-contract" feature of RBI's retail CBDC.