CBDC-Based DBT Initiative Launched in Chandigarh to Strengthen Transparency in PDS

GovernanceGovernment Schemes

Union Minister for Agriculture and Farmers’ Welfare and Rural Development Shivraj Singh Chouhan launched a Central Bank Digital Currency (CBDC)-based Direct Benefit Transfer (DBT) system in Chandigarh on August 14, 2026. The initiative was launched at Tagore Theatre under the chairmanship of Punjab Governor Gulab Chand Kataria. Union Minister Pralhad Joshi and Minister of State for Food and Public Distribution Nimuben Jayantibhai Bambhaniya were also present.

The initiative aims to enhance transparency, security and timeliness in the Public Distribution System (PDS). Under the new mechanism, benefits will be transferred digitally and securely, with technological safeguards ensuring that funds are used only for foodgrains and other essential food commodities. Beneficiaries will also have greater choice in purchasing essential items, including pulses and other food products.

Chouhan said the Chandigarh pilot could serve as a model for wider implementation across the country. He emphasised that the government remains committed to protecting farmers’ interests and ensuring food security. He reiterated that national interest, farmer welfare and public welfare would remain the foremost considerations in agricultural and trade-related policies.

The Minister highlighted the role of DBT in reducing intermediaries and improving the direct delivery of government benefits. Technology-based safeguards, he said, can also minimise the possibility of misuse of financial assistance.

Chouhan also highlighted the Pradhan Mantri Garib Kalyan Anna Yojana, describing free foodgrain support to more than 80 crore people as an important component of India’s social security framework.

He stressed that democratic debate is essential but parliamentary disruptions should not undermine constitutional and legislative processes.

Reiterating Prime Minister Narendra Modi’s vision that “government should be visible in people’s lives, not merely in files,” Chouhan said the Chandigarh initiative reflects the government’s broader effort to make governance transparent, technology-enabled and beneficiary-centric.