Scheme

CBDC-based Public Distribution System Pilot

GS3 Economy: Digital currency and PDSGS2 Welfare schemesPrelims and Mains

In the news since 15 February 2026

Why in news
On 15 February 2026, Union Home and Cooperation Minister Amit Shah launched a CBDC-based Public Distribution System in Gandhinagar, Gujarat, and inaugurated the 'Annapurna' grain-dispensing machine.
What it is
The Public Distribution System supplies subsidised food grains to eligible households through fair price shops under the National Food Security Act, 2013. The new pilot links ration delivery to Central Bank Digital Currency, the digital form of the rupee issued by the RBI. It aims to cut leakage and middlemen in grain delivery.
Launch
The CBDC-based PDS was launched in Gandhinagar, Gujarat, with the Gujarat CM and the Union Food Minister present.
Annapurna machine
The Annapurna machine dispenses 25 kg of grain in 35 seconds.
Rollout plan
The system is to be implemented across the country in the next 3-4 years.
Entitlement
Each beneficiary gets 5 kg of free food grains per month; the release cites 80 crore people covered.
Ministry in charge
The initiative is by the Ministry of Consumer Affairs, Food and Public Distribution.
CBDC issuer
CBDC, the digital rupee, is issued by the Reserve Bank of India as legal tender.

Don’t confuse with CBDC vs cryptocurrency: CBDC is legal tender issued by the central bank; private cryptocurrencies are not.

Don’t confuse with CBDC vs UPI: UPI is a payment system moving bank money; CBDC is the central bank's own digital currency.

Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.

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Worth revising until Prelims 2027: most news questions come within two years of the event.

Each time it was in the news

  1. 15 February 2026

    On 15 February 2026, Union Home and Cooperation Minister Amit Shah launched a CBDC-based Public Distribution System in Gandhinagar, Gujarat, and inaugurated the 'Annapurna' grain-dispensing machine.