CBDC-Based DBT under PMGKAY ⭐⭐⭐

A major development in digital welfare delivery.

Important

• Minister: Pralhad Joshi
• UTs: Chandigarh and Dadra & Nagar Haveli
• First large-scale adoption of CBDC in a central government welfare programme.
• Beneficiaries receive subsidy directly into their Digital Rupee wallets.
• Subsidy is purpose-bound and can be used to purchase foodgrains from empanelled merchants.

PMGKAY

Pradhan Mantri Garib Kalyan Anna Yojana

• Launched: March 2020
• During COVID-19 pandemic.
• Objective: free foodgrains for more than 80 crore vulnerable citizens.
• Managed by Department of Food & Public Distribution.

Prelims Concept

CBDC → Central Bank Digital Currency

Digital Rupee → India's CBDC