Lok Sabha Question No. 4218 (UNSTARRED), answered on 2026-03-18
Subject: Digital Vouchers in PDS
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Smt. Bharti Pardhi, Dr. Shrikant Eknath Shinde, Shri Ravindra Dattaram Waikar, Shri Naresh Ganpat Mhaske, Shri Shrirang Appa Chandu Barne

## GOVERNMENT OF INDIA

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA

UNSTARRED QUESTION NO. 42 18

TO BE ANSWERED ON 18TH MARCH, 2026

## Dl(,ITAL VOUCHERS IN PDS

## 4218. SMT. BHARTI PARDHI:

SHRI RAVINDRA DATTARAM WAIKAR:

DR. SHRIKANT EKNATH SHINDE:

SHRI SHRIRANG APPA CHANDU BARNE:

SHRI NARESH GANPAT MHASKE:

Will the Minister of CONSUMER  AFFAIRS,  FOOD  AND PUBLIC DISTRIBUTION be pleased to  state:

- (a) : the objectives behind proposing pilot projects for use of digital vouchers in the Public Distribution  System (PDS) to modernise delivery  and reduce leakages;
- (b): the details of  scope and design of the proposed pilots  including  States or districts identified for implementation;
- (c) : the assessment made of the potential impact of digital vouchers on transparency, efficiency  and beneficiary convenience in PDS operations;
- (d): the details of consultations held with  stakeholders including fair price shop dealers to address operational concerns and ensure smooth implementation;
- (e): whether safeguards are being built  to  ensure inclusivity  and uninterrupted food security during the transition to digital  systems; and
- (f): if  so, the details thereof  and if  not, the reasons for the same?

## ANSWER

MINISTER OF STATE FOR MINISTRY  OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

(SHRIM ATI NIMUBEN JAYANTIBHAI  BAMBHANIYA)

- (a): The objective of pilot  project  for  the use of  Central Bank Digital  Currency (CBDC)  in the Public  Distribution  System (PDS)  is  enhancing the Direct  Benefit  Transfer (DBT)  ecosystem by providing a secure, instant, traceable and programmable digital cash mechanism for Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY)  beneficiaries,  thereby enabling smoother fund flow  and reducing friction in availing entitlements.
- (b): Under CBDC, banks issue commodity-specific digital  food coupons (tokens) or voucher codes in  the Aadhaar-verified mobile-linked account/wallet of  the beneficiary. Beneficiaries can

redeem these food coupons/voucher  codes for authorized commodities at associated Fair Price Shops (FPS)/Merchant Outlets.

Government of India (GoI)  has launched  pilot  project on the use of CBDC  in the PDS in the State of  Gujarat, covering the Sabarmati zone of  Ahmedabad city  as well  as in the urban areas of Surat, Anand, and Valsad districts. A pilot  project is also launched in Union Territory  ofPuducherry for use of CBDC for DBT under PMGKAY.

(c): The introduction of CBDC is aimed to significantly enhance transparency,  efficiency, and beneficiary convenience  in the functioning  of PDS. The system also intend to minimize transaction delays and improve ease of access. CBDC also provide clear information to beneficiaries about their monthly entitlement, the quantity offoodgrains  allocated, the subsidy value provided by the Got, the quantity  lifted  and the balance due.

(d): GoI has undertaken detailed consultations with key stakeholders, including Reserve Bank of India, State/UT Governments, partner banks, and other implementing agencies, to address operational concerns and ensure smooth implementation  of the pilot  projects.

(e)  &  (f):  The implementation of pilot  project is carried out in a phased manner with limited number of  beneficiaries  and locations. The existing PDS mechanisms remain operational for  remaining beneficiaries who are not covered under pilot  project.

SeScRSeSq