Amit Shah, Union Home and Cooperation Minister
Union Home and Cooperation Minister Amit Shah on Sunday inaugurated the country’s first Central Bank Digital Currency (CBDC)-based public distribution system in Gujarat’s Gandhinagar and described it as a “leak-proof” reform that will digitize and secure India’s flagship food subsidy programme.
Addressing stakeholders and officials at the launch event, Shah said the new system marks a decisive departure from direct benefit transfers. “By using this system, corruption will be completely eliminated from PDS and ration will be provided to the beneficiaries in a transparent manner,” he said, highlighting the promise of real-time tracking and accountability in food entitlements.
Recalling past challenges, Shah said earlier inefficiencies – from manual weighing scales to fake ration cards – have been progressively dealt with over the last decade with digitization and e-ration card rollouts, and the CBDC-enabled system takes that transformation further. “Those scales have been made digital. Ration cards used to be fake. E-ration cards were introduced. This system will bring complete transparency,” he said.
Pilot rollout in districts of Gujarat under CBDC framework
The pilot project covers beneficiary families from Ahmedabad, Surat, Anand and Valsad districts of Gujarat. Under the system, beneficiaries receive credit of digital token – e-Rupee (CBDC) in an RBI-enabled digital wallet specifying the ration item, quantity and subsidized price. Beneficiaries with smartphones can scan the QR code at fair price shops to redeem their food entitlements, while feature-phone users can authenticate the transaction through an Aadhaar-based one-time password (OTP).
Union Minister Pralhad Joshi elaborated that the digital tokens are issued in wallets linked to RBI and can be used to purchase ration items only at authorized shops. “This system ensures that only eligible beneficiaries receive their ration on time,” he said, emphasizing that CBDC tokens cannot be spent on other commodities – a feature that helps prevent misuse and leakage of subsidies.
Annapurti Grain ATM and Packaging Improvements
As part of the rollout, Gujarat also inaugurated an “Annapurti Grain ATM” – an automated dispensing machine that will operate 24×7. From March 2026, beneficiaries will be able to get one kilogram packets of arhar dal, gram, sugar and salt along with up to 25 kg of wheat and rice directly from the machine. Officials say the machine can deliver up to 25 kg of grain in about 35 seconds.
Shah underlined the local manufacturing aspect of ATM hardware. “The ATM is made in Gujarat,” he said, linking the launch to the state’s broader push for technology-based governance solutions. Additionally, the state government will start supplying pulses like arhar and gram in standardized one kilogram sealed packs under the National Food Security Act to improve quality and hygiene compared to loose grain distribution.
towards nationwide change
Officials say the pilot will expand in a phased manner to other areas including Union Territories like Chandigarh, Dadra and Nagar Haveli and Puducherry, where CBDC wallets will replace direct bank account transfers under the traditional direct benefit transfer (DBT) model. Shah anticipated that the CBDC-enabled model could be scaled up to all states over the next three to four years, making India a leader in the use of programmable digital currency for social welfare delivery.
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Published on February 15, 2026
