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