India Launches Digital Rupee Pilot for Food Subsidy Under PMGKAY in Puducherry

• India initiates a pilot project in Puducherry to disburse food subsidies via Central Bank Digital Currency (CBDC) under PMGKAY.
• The new system replaces conventional bank transfers, directly crediting subsidies into beneficiaries' CBDC wallets.
• Beneficiaries can redeem RBI-generated digital coupons (e₹) for foodgrains at Fair Price Shops and authorized outlets.
• Aims to enhance transparency, traceability, and real-time processing while addressing operational challenges.
• The pilot will expand across Puducherry, then to Chandigarh and Dadra and Nagar Haveli, with nationwide implementation pending evaluation.