Union Agriculture and Farmers Welfare Minister Shivraj Singh Chouhan launches a CBDC-based direct benefit transfer pilot in Chandigarh, aiming to make food subsidies faster, safer, and less prone to misuse, with potential for wider rollout across India.
Union Agriculture and Farmers Welfare Minister Shivraj Singh Chouhan has launched a Central Bank Digital Currency-based direct benefit transfer system in Chandigarh, in what the government described as a push to make food subsidies faster, safer and harder to misuse. The pilot, unveiled at Tagore Theatre under the chairmanship of Punjab Governor Gulab Chand Kataria, also drew the attendance of Union Minister Pralhad Joshi and Minister of State for Food and Public Distribution Nimuben Jayantibhai Bambhaniya.
Chouhan said the new approach would strengthen the Public Distribution System by improving transparency and reducing leakages, while also giving beneficiaries a more controlled and secure way to access subsidised food. The digital model is designed to ensure that assistance is used only for food grains and other essential items, and officials say it could eventually be scaled beyond Chandigarh if the trial proves successful. The move follows earlier efforts in the city to tighten subsidy delivery, including an e-KYC drive launched in December 2023 to verify eligibility and cross-check beneficiary data with other agencies.
The Chandigarh initiative also builds on a wider national experiment with programmable digital money in welfare delivery. Gujarat launched India’s first CBDC-based public distribution system in February 2026, while separate pilot projects in Puducherry and at the Centre have tested the use of the Reserve Bank of India’s digital rupee for food subsidy distribution. Those models aim to restrict spending to authorised purchases, improve traceability and reduce corruption in the food supply chain.
Alongside the new digital push, Chouhan used the event to reiterate the government’s message on food security and farm support. He said wheat and rice stocks remain strong, that India is meeting domestic requirements and can export when necessary, and that schemes such as PM-KISAN will continue. He also praised the Pradhan Mantri Garib Kalyan Anna Yojana, saying it is helping more than 80 crore people and allowing families to save money for education and other needs.
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