- 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.
Why it matters
- Could cut leakages and middlemen in grain delivery.
- Links food security to digital public infrastructure.
Problems
- Connectivity and digital literacy gaps in remote areas.
- Beneficiary authentication errors can exclude eligible households.
Way forward
- Scale up after evaluating the pilot, with offline backup options.
- Keep grievance redressal and manual fallback at fair price shops.
Put in your answer
Free grain coverage: 5 kg free grain per person per month to 80 crore people.
National Food Security Act, 2013: Gives a legal right to subsidised grain through the PDS.
- 2026Mains GS3 · Q1Define digital rupee and explain working and progress of CBDC
- 2019Mains GS3 · Q13Reformative steps to make food grain distribution system effective
- 2022Mains GS3 · Q3Major PDS challenges and how to make it effective, transparent
- 2001Prelims Q33Name the prices government pays for PDS and buffer stock food grains
- 2004Prelims Q9Which statement about TPDS and Annapurna schemes is incorrect
- 2004Prelims Q77Which statements on food grain procurement and TPDS issue prices are correct
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
Prelims practice · Statements
Ours, not from a UPSC paper
Consider the following statements:
- 1.The CBDC-based Public Distribution System was launched in Gandhinagar, Gujarat.
- 2.The 'Annapurna' machine inaugurated with it is stated to distribute 25 kg of food grains in 35 seconds.
- 3.The Union Home Minister said the CBDC-based system would be implemented across the country within 10 years.
Which of the statements given above is/are correct?
True or false?
1 of 6
Statements the way Prelims prints them. Say first, then see the fact.
1.The CBDC-based PDS was launched in Gandhinagar, Gujarat.
True. Launched in Gandhinagar, Gujarat.
2.The Annapurna machine dispenses 25 kg of grain in about 35 seconds.
True. 25 kg in 35 seconds.
3.Under the free grain scheme mentioned, each beneficiary receives 5 kg of food grains per month.
True. 5 kg per person per month.
4.The initiative is run by the Ministry of Cooperation.
False. It is by the Ministry of Food and Public Distribution (Consumer Affairs, Food and Public Distribution); the Cooperation Minister only launched it.
5.The Central Bank Digital Currency in India is issued by the Reserve Bank of India.
True. RBI issues the digital rupee.
6.The Public Distribution System is legally backed by the National Food Security Act, 2013.
True. NFSA 2013 gives legal entitlement to subsidised grain.
Written by us from the release, not by UPSC; checked by a second model.
Worth revising until Prelims 2027: most news questions come within two years of the event.