Government of India Launches CBDC-Based Direct Benefit Transfer under PMGKAY in Chandigarh and Dadra & Nagar Haveli

The Government of India has launched a Central Bank Digital Currency (CBDC)‑based Direct Benefit Transfer (DBT) for the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) in the Union Territories of Chandigarh and Dadra & Nagar Haveli. Under this system, food subsidies are credited directly to beneficiaries’ Digital Rupee wallets and can be spent only on foodgrains at empanelled merchants via QR‑code or OTP‑based payments. The initiative promises instant, purpose‑bound transfers, digital transaction records, reduced cash handling, and greater transparency, building on earlier pilots in Gujarat and Puducherry and on existing digital infrastructure such as Jan Dhan, Aadhaar and UPI.