The Government of India will launch a Central Bank Digital Currency (CBDC)-based Direct Benefit Transfer (DBT) system under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) in the Union Territories of Chandigarh and Dadra & Nagar Haveli on 14 August 2026. The launch event will be attended by Union Minister for Consumer Affairs, Food and Public Distribution Shri Pralhad Joshi, Governor of Punjab and Administrator of U.T. Chandigarh Shri Gulab Chand Kataria, Union Minister for Agriculture and Farmers Welfare Shri Shivraj Singh Chouhan, and Minister of State for Consumer Affairs, Food and Public Distribution Smt. Nimuben Jayantibhai Bambhaniya.
This initiative marks Chandigarh and Dadra & Nagar Haveli as the first Union Territories to operationalize food subsidy transfers to all eligible PMGKAY beneficiaries through programmable CBDC (Digital Rupee) tokens directly into their CBDC wallets. Building on earlier pilot implementations in Puducherry and Gujarat, this rollout represents complete digital adoption and saturation of all eligible beneficiaries across the targeted Union Territories.
Under the new model, eligible PMGKAY beneficiaries will receive food subsidy directly into their CBDC wallets instead of conventional bank account transfers. The subsidy can then be used to purchase foodgrains from empanelled merchants through a secure, traceable, and real-time digital payment mechanism. The CBDC-enabled DBT model aims to ensure transparent and end-to-end traceable delivery of public funds while reducing leakages, diversion, and cash handling associated with traditional subsidy delivery mechanisms.
The initiative facilitates instant and secure transfer of benefits to beneficiaries and promotes financial inclusion through simple wallet-based transactions. It will strengthen accountability and real-time monitoring of subsidy utilization while demonstrating the potential of the Digital Rupee for future payment systems. The rollout is envisaged as a proof of concept for the nation and a scalable template for adoption by other States and Union Territories, providing valuable operational experience regarding CBDC integration with welfare schemes.