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CBDC-Based DBT for PMGKAY Launched

  • 19 Aug 2026

On 14th August 2026, the Government of India launched Central Bank Digital Currency (CBDC)-based Direct Benefit Transfer (DBT) under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) in Chandigarh and Dadra & Nagar Haveli.

Key Points

  • Digital Rupee: Food subsidy will be transferred directly into beneficiaries’ Digital Rupee wallets instead of conventional bank accounts.
  • Purpose-Bound Subsidy: The digital subsidy can only be used to purchase foodgrains from empanelled merchants.
  • First Rollout: Chandigarh and Dadra & Nagar Haveli became the first State/Union Territory to operationalise this system for all eligible PMGKAY beneficiaries.
  • Previous Pilots: The initiative was first piloted in Gujarat on 15 February 2026 and later in Puducherry on 26 February 2026.
  • Digital Public Infrastructure: The initiative combines DBT with CBDC to improve transparency, traceability and last-mile delivery.