Chandigarh, May 4: Chandigarh has been selected as the testing ground for a new digital food subsidy model that replaces conventional grain collection with RBI-issued digital tokens. Scheduled for a June rollout, the programme utilizes the Central Bank Digital Currency (CBDC) to provide a more transparent and secure method of delivering PDS benefits.
Unlike standard cash transfers, these digital coupons are programmable, meaning they cannot be diverted toward non-food expenses. This feature addresses a primary concern of the Direct Benefit Transfer (DBT) model by guaranteeing that funds are spent solely on wheat and rice at authorized outlets. The tokens currently carry a one-month validity, though this period may be extended to three months based on future requirements.
“The CBDC carries the same legal status as physical currency but can be programmed for specific usage,” officials declared, noting the balance between legal tender and restricted utility.
While the digital transition represents a major reform in subsidy delivery, the government maintained that it will not disrupt the Minimum Support Price (MSP) or the broader procurement system. The pilot aims to provide beneficiaries with more control over their entitlements, allowing for redemption at designated outlets without the risk of being turned away due to local stock issues.
“The reform was aimed at improving subsidy delivery and did not impact procurement systems, minimum support price mechanisms or entitlements under the National Food Security Act,” officials asserted to clarify the scope of the project.
