Government of India launches CBDC-based Digital Food Coupon Pilot in Gujarat

• 16 Feb 2026
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The Centre launched a Central Bank Digital Currency based Digital Food Currency pilot program. The programme was inaugurated by the Union Home Minister Amit Shah in the presence of the various government officials including: Chief Minister of Gujarat Bhupendra Patel, Minister of State for Consumer Affairs, Food and Public Distribution Nimuben Jayantibhai Bambhaniya, Deputy Chief Minister of Gujarat Harsh Sanghvi, Minister for Food and Civil Supplies, Gujarat Ramanbhai Bhikabai Solanki, Minister of State for Food and Civil Supplies, Gujarat Poonamchand Chhanabhai Baranda, and Mayor of Gandhinagar Meeraben Patel. 

Additionally, several other senior officials from the Government of India, Government of Gujarat and the Reserve Bank of India attended the inauguration. While speaking at the occasion, the Union Minister for Consumer Affairs, Food and Public Distribution, Prahlad Joshi, stated that Central Bank Digital Currency’s introduction in the Public Distribution System marks a significant milestone when it comes to ensuring transparency, efficiency and beneficiary empowerment in food security architecture of India. 

During the launch of CBDC-based Digital Food Currency pilot in Gujarat, he placed emphasis on the fact that India’s PDS, which is the largest food distribution system in the world serving more than 80 crore beneficiaries, continues to evolve through tech led reforms. He gave the “Har Dana, Har Rupiya, Har Adhikar” slogan and said the initiative will enhance awareness of entitlements, simplify access and strengthen accountability when it comes to delivery of subsidized foodgrains.

Under the CBDC framework, digital coupons generated via Reserve Bank of India will be credited directly to the beneficiaries as programmable digital currency, as per information given by Shri Joshi. With the help of CBDC coupons or voucher codes, the beneficiaries can redeem their entitled quantity of foodgrains at the fair price shops. 

The system will address challenges pertaining to biometric authentication and e-POS operational issues. At the same time, it’ll ensure transactions are secure, trackable and happen in real time. Further, he said that the pilot program will be expanded to the Union Territories of Chandigarh, Puducherry and Dadra & Nagar Haveli and Daman & Diu in the near future.

At the occasion, Shri Amit Shah stated that the CBDC pilot represents an important extension of the Digital India vision into the Public Distribution System of the nation. He appreciated the efforts made by all stakeholders in making the system more transparent, corruption] free and leak proof. He noted that nearly half of the world’s digital transactions now happen in India. He also encouraged other States and Union Territories to adopt CBDC in implementation of PDS.

Source: Press Information Bureau (PIB)