Union Home Minister and Minister of Cooperation Shri Amit Shah launches the Central Bank Digital Currency (CBDC)-based Public Distribution System (PDS) in Gandhinagar, the capital of Gujarat

I have sufficient grounded facts from Tier-1 sources. Writing the note now.

CBDC-based Public Distribution System (PDS) — UPSC Study Note

1. At a Glance

2. Why in the News

3. Background & Evolution

4. Core Static Facts

5. Multi-Dimensional Analysis

Economic / Fiscal - Replaces leakage-prone cash/in-kind subsidy with programmable money earmarked only for foodgrain purchase — narrows the Rajiv Gandhi 15-paisa-in-rupee type leakage [S2]. - FPS dealers get real-time margin credit, easing working-capital stress [S2].

Technological - Uses programmability feature of CBDC (a unique e₹ attribute distinguishing it from UPI) [S5]. - Generates a real-time digital audit trail; eliminates need for repeated e-PoS biometric authentication [S2]. - Built on RBI's token-based, blockchain-component retail CBDC architecture [S7].

Governance / Administrative - Operationalises "Minimum Government, Maximum Governance" in welfare delivery [S1]. - Federal experiment: Centre-State-RBI tripartite delivery model — Gujarat as testbed before UT rollout [S2].

Social / Equity - Targets NFSA beneficiaries (Antyodaya + Priority Households); aims at dignity-preserving, biometric-free access for elderly/manual-labour beneficiaries whose fingerprints often fail at e-PoS [S1][S2].

Legal / Constitutional - PDS is a concurrent subject; NFSA 2013 flows from Article 47 (DPSP — duty to raise nutrition); right-to-food upheld in PUCL v. UoI (2001). - CBDC issuance enabled by RBI Act, 1934 (as amended 2022) [S5].

6. Recent Developments (last 12-18 months)

7. Prelims Hooks

8. Mains Relevance

9. Related Topics to Study Next

10. Common Errors / Trap Areas

11. Sources

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