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