Source: PIB
Subject: Government Scheme
Context: The Union Home Minister launched India’s first Central Bank Digital Currency (CBDC)-based Public Distribution System (PDS) in Gandhinagar, Gujarat.
About Central Bank Digital Currency (CBDC)-based Public Distribution System (PDS):
What it is?
- The CBDC-based PDS is a digitally enabled ration distribution system that integrates Central Bank Digital Currency into the Public Distribution System to ensure secure and transparent food grain delivery.
Organisations Involved:
- Ministry of Consumer Affairs, Food and Public Distribution – Nodal ministry overseeing PDS reforms and implementation.
- Reserve Bank of India (RBI) – Issuer of the Central Bank Digital Currency (Digital Rupee).
Aim:
- To eliminate corruption and leakages in ration distribution.
- To operationalise the vision of “Minimum Government, Maximum Governance” in welfare delivery.
- To ensure secure, efficient, and transparent access to subsidised food grains.
Key Features:
- Launched in Gandhinagar: The system has been started in Gandhinagar, Gujarat as the first implementation.
- Linked with Digital India: The ration distribution process is integrated with the broader Digital India framework.
- Use of CBDC in Transactions: The Central Bank Digital Currency is used within the ration distribution mechanism.
- Annapurna Machine for Distribution: An automated machine dispenses 25 kg of food grains in 35 seconds with accuracy.
- Ensures Transparency: Digital processes aim to prevent corruption and safeguard beneficiaries’ rights.
- Nationwide Expansion Planned: The system will be gradually rolled out across the country in the next 3–4 years.
Significance:
- Strengthens Digital India in welfare delivery systems.
- Enhances efficiency and transparency in serving nearly 80 crore beneficiaries.
- Reduces fiscal leakages and improves public trust in welfare schemes.
