CBDC-based Digital Food Coupon

On 14th February 2026, the Union Government launched a Central Bank Digital Currency (CBDC)-based Digital Food Currency pilot in Gujarat.

The initiative has been launched in collaboration with the Reserve Bank of India (RBI) and the Gujarat government under the Public Distribution System (PDS).

Aspect	Details
Digital Food Coupon	Under the CBDC framework, food coupons can be issued through the RBI and credited directly to beneficiaries as programmable digital tokens.
Redemption Process	Beneficiaries can redeem their entitled quantity of food grains at Fair Price Shops (FPS) using a CBDC coupon or voucher code.
Central Bank Digital Currency	CBDCs are digital versions of a country’s fiat currency, issued and regulated by the central bank.
Difference from Cryptocurrency	Unlike decentralised cryptocurrencies, CBDCs are centralised and fully controlled by the government or central bank.
Global First CBDC	The Bahamas was the first country to launch a nationwide CBDC named the Sand Dollar in 2020.
Other Global Examples	Nigeria launched the eNaira, while China piloted its digital currency, the e-CNY or Digital Yuan, in April 2020.
India’s CBDC	Digital Rupee is India’s Central Bank Digital Currency issued by the Reserve Bank of India.

PT Facts

Digital Rupee Pilot: RBI launched pilots in wholesale and retail segments in 2022.
Programmable CBDC: Enables use-restrictions for specified purposes.
PDS Framework: Operates under the National Food Security Act, 2013.
Fair Price Shops: Last-mile outlets for subsidised food grains.
Welfare Delivery: CBDC can improve traceability and transparency.
Leakage Control: Programmable coupons can restrict misuse of benefits.

Source:

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