CBDC-Based Food Subsidy Transfers Begin in Two Union Territories

# CBDC-Based Food Subsidy Transfers Begin in Two Union Territories ### Why in News? Chandigarh and Dadra & **Nagar Haveli** became the first Union Territories to operationalise food-subsidy transfers using programmable **Digital Rupee** tokens. ### How does the CBDC-based transfer work? - Instead of receiving the subsidy through a conventional bank-account route, beneficiaries receive programmable **Digital Rupee** tokens in **CBDC** wallets. - The tokens are designed for use at authorised merchants for foodgrain purchases, helping ensure that the subsidy is used for its intended purpose. - The initiative is being used for benefits linked to the **Pradhan Mantri Garib Kalyan** **Anna Yojana**. ### Exam Connect - **CBDC** / **Digital Rupee** → central bank digital currency - **PMGKAY** → Ministry of **Consumer Affairs**, Food & **Public Distribution** - Chandigarh and Dadra & **Nagar Haveli** → first UTs for this food-subsidy model