Why is it in the news?
CBDC-based food subsidy pilot launched under PMGKAY in Puducherry.
Integrates Digital Rupee (e₹) into Direct Benefit Transfer framework.
Category: Economy
Important Points:
● Subsidy credited as programmable CBDC tokens
● Tokens redeemable only at Fair Price Shops
● Eliminates diversion and improves targeting
● Implemented with RBI, PFMS, Canara Bank, Govt. of Puducherry
● Retail CBDC (e₹-R) for public transactions
● Wholesale CBDC (e₹-W) for financial institutions
● e₹ recognized as legal tender
● Distinct from UPI; wallet-to-wallet settlement