Gujarat unveils nation's first CBDC-based Public Distribution System

Union Home Minister Amit Shah launched India's first CBDC-based Public Distribution System in Gandhinagar. The initiative, including 'Grain ATMs', aims to create a transparent, modern system to eliminate corruption and ensure food security.

Union Home and Cooperation Minister Amit Shah launched the nation's first Central Bank Digital Currency (CBDC)-based transparent, modern and user-friendly Public Distribution System in Gandhinagar. Chief Minister Bhupendra Patel, Union Minister for Food and Public Distribution Pralhad Joshi and Deputy Chief Minister Harsh Sanghavi graced the event held at Mahatma Mandir.

On this occasion, Union Home Minister Amit Shah launched the distribution of chickpeas and tur dal in 1 kg sealed packets, inaugurated the Annapurti Grain ATM facility in the Sabarmati zone of Ahmedabad, and initiated the ''Garima Poshan - Suposhit Garudeshwar Taluka' campaign, according to the Gujarat Chief Minister's office (CMO).

MoUs Signed to Safeguard Consumer Interests

Furthermore, in the presence of the dignitaries, a Memorandum of Understanding (MoU) was signed between the Food and Civil Supplies Department and the Consumer Education and Research Centre (CERC) to safeguard consumer interests. This MoU will establish a pre-litigation grievance redressal ecosystem to ensure issues are resolved before reaching the courts. Furthermore, the Food and Civil Supplies Department signed an MoU with CARE Ratings and the Consumer Education and Research Centre (CERC) to develop a 'Consumer Responsibility Index' (CRI).

Amit Shah: A Technology-Driven Reform for the Poor

On the launch of various projects to digitise and make the Public Distribution System more transparent, HM Amit Shah extended greetings to the nation on Maha Shivratri. The CMO stated that, inspired by Prime Minister Shri Narendra Modi, the expansion of 'Digital India' has now reached the Public Distribution System. He further noted that a decade ago, nearly 60 crore people in the country did not have bank accounts in their families. However, under the Prime Minister's leadership, India has emerged as a global leader in digital transactions, with nearly half of the world's total digital transactions taking place in India.

Speaking further on digital transformation, HM Shri Amit Shah said that technology-driven reform is now becoming a reality in delivering affordable food grains to the poor. Under this initiative, modern systems such as the CBDC project and the 'Made in Gujarat' Annapurti Grain ATM have been made operational.

The CMO stated that he emphasised that this new technology-based framework will eliminate corruption and remove middlemen, ensuring that citizens in remote villages, districts, and backward regions receive their full food grain entitlements directly and transparently. Congratulating all participating institutions as well as the Central and State departments associated with the CBDC project, HM Amit Shah said that this modern system truly embodies the Prime Minister's mantra of 'Minimum Government, Maximum Governance.' He further stated that under the Pradhan Mantri Garib Kalyan Yojana, 81 crore people across the country are currently receiving free rations from the government. This food security framework has now become digital and transparent.

Annapurti Grain ATM: A Revolutionary Initiative

Referring to the Grain ATM, the Annapurti machine, the new pulses packaging initiative, and the Garima Poshan campaign launched during the program, HM Amit Shah termed them as revolutionary initiatives in providing food security to the poor. Elaborating further, Amit Shah stated that the Annapurti machine will enable the distribution of 25 kg of grain in just 35 seconds, ensuring complete accuracy in weight, value, and quality. He added that this system, integrated with the Aadhaar-based biometric mechanism, CBDC, and the payment system of the Reserve Bank of India, will be implemented nationwide over the next three to four years. As a result, beneficiaries across the country will receive their entitled quality rations conveniently and with full transparency.

Holistic Development and Farmer Welfare

Highlighting the impact of welfare initiatives, Amit Shah stated that under the leadership of Prime Minister Narendra Modi, the holistic development of the poor and every citizen has been ensured through the effective implementation of numerous schemes. He noted that over the past decade, the construction of 4 crore houses under the Pradhan Mantri Awas Yojana, Nal se Jal connections in 13 crore households, LPG connections in around 13 crore homes under the Pradhan Mantri Ujjwala Yojana, toilets in 12 crore households under the Swachh Bharat Mission, and 2.91 crore women becoming 'Lakhpati Didis' reflect the success of the government's initiatives, the CMO stated.

Emphasising the protection of farmers and cattle-rearers, Amit Shah stated that under the leadership of the Prime Minister, the government has remained steadfast in its commitment to farmer welfare. He said that over the past decade, procurement of food grains from farmers at Minimum Support Price (MSP) has increased fifteenfold, while the agriculture budget has increased from Rs 26,000 crore to Rs 1,29,000 crore. He further noted that in International Free Trade Agreements (FTAs), India's dairy, agriculture, and fisheries sectors have been provided comprehensive protection, thereby ensuring security for domestic producers while also opening global markets for Indian products. UHM Shri Amit Shah congratulated Chief Minister Bhupendra Patel, Union Minister Pralhad Joshi, and the Government of Gujarat for choosing Gujarat for the CBDC-based transparent distribution system for this pilot project. He described this leak-proof model as a blueprint for a Viksit Bharat.

CM Bhupendra Patel: Technology for Last-Mile Delivery

On this occasion, Chief Minister Bhupendra Patel stated that under the leadership of Prime Minister Narendra Modi and the guidance of HM Amit Shah, a new chapter in public welfare is being written with the mantra of "Je Kahevu Te Karvu." He added that the Prime Minister has laid a strong foundation for a Viksit Bharat through GYAN--empowering the GYAN --Garib (the Poor), Yuva (Youth), Annadata (Farmers), and Mahila (Women).

Referring to the transformative power of technology, CM said that overcoming earlier doubts about digital payments, India has today established itself as the world's largest user of UPI. He noted that Direct Benefit Transfer (DBT), Jan Dhan, Aadhaar, and Mobile--strengthened further by AI-based database connectivity--have ensured that the benefits of government schemes reach beneficiaries directly and transparently. Focusing on the four pillars of food, housing, health, and income security, he added, has enabled nearly 25 crore people in the country to rise above the poverty line over the past decade.

CM said that 'Grain ATMs' will now be made operational across the state for the distribution of food grains. Through these ATMs, 25 kg of grain can be dispensed in just 35 seconds, and the machines will function around the clock. He added that this facility will enable workers and members of the labour class to collect wheat, rice, and pulses entitled under the National Food Security Act at their convenience, even after working hours, marking a significant step toward empowering each citizen.

Speaking about the CBDC-based Public Distribution System, the CM said this technology will provide beneficiaries with precise information on subsidies, product weights, and pricing via digital tokens. He emphasised that digital tracking and real-time monitoring will ensure complete transparency in the delivery of benefits, thereby fulfilling the government's commitment to a 'saturation approach'--reaching every eligible beneficiary without exception.

CM expressed confidence that after recently connecting cattle-rearers with AI-driven solutions through Amul, this technology-based initiative in the Public Distribution System would also prove to be a milestone. He added that, following the Prime Minister's mantra of "Sewa hi Sadhana," the state government is steadfastly progressing toward the vision of a 'Viksit Bharat from Viksit Gujarat' @2047, ensuring that technology delivers benefits to the last person in society.

Pralhad Joshi: A 'Digital Satyagraha' for Food Security

Extending greetings on the occasion of Maha Shivratri, Pralhad Joshi, Union Minister for Food and Public Distribution, said that under the leadership of Prime Minister Narendra Modi, the CBDC-based initiative is not merely a technology app or portal, but a transformative step that will secure the rightful access to food grains for nearly 80 crore needy beneficiaries, the CMO said.

He stated that this innovative initiative will further strengthen the world's largest food security program, which is being implemented under the Prime Minister's guidance. He added that integrating advanced technology into the grain distribution system was once a major challenge, but under the 'Digital India' campaign, this task has become significantly easier and more efficient. He stated that with the nationwide digitisation of ration cards, the vision of 'One Nation, One Ration Card' has been successfully realised.

Through digital coupons introduced under the initiative of the Reserve Bank of India, beneficiaries can collect food grains at any time by simply scanning a QR code at a Grain ATM. He added that even beneficiaries with basic mobile phones will be able to access the facility, as the system will enable grain distribution via OTP verification sent via SMS. The implementation of this technology has led to the cancellation of nearly 2 to 3 crore fake ration cards, ensuring greater integrity in the system.

With the launch of the CBDC-based framework, only genuine beneficiaries will be able to access the benefits. Since the digital entitlement for food grains will be credited directly to the beneficiary's wallet, it can be used exclusively for purchasing grain from fair price shops and Grain ATMs, preventing misuse elsewhere. The introduction of this digital grain distribution model in Gujarat is expected to create a positive ripple effect across other states, helping to eliminate duplicate ration cards and further strengthen transparency nationwide. Union Minister said that the CBDC-based affordable grain distribution system will stand as a 'Digital Satyagraha' against poverty on the banks of the Sabarmati River. He said this initiative will help curb black marketing and ensure that food grains reach needy beneficiaries swiftly and transparently. The Minister added that this innovative model will be expanded nationwide in the coming years.

Deputy CM Harsh Sanghavi: A New Chapter for India's PDS

Deputy Chief Minister Harsh Sanghavi stated that the nation's digital currency will help ensure food reaches the plates of the poor. He remarked that a new chapter of history is being written once again on the soil of Gujarat. He added that the country is on the verge of witnessing a transformative revolution that will redefine and strengthen the Public Distribution System, not only in Gujarat but across India.

Deputy CM added that ensuring food security has long been a significant challenge in a vast country like India. In the past, issues such as middlemen and long queues at ration shops often delayed the delivery of government grain to beneficiaries. He emphasised that the CBDC-based Public Distribution System project will provide a lasting solution to these challenges.

He said that traditionally, the initial benefits of new technologies have often reached large industrialists first. However, under the leadership of Prime Minister Shri Narendra Modi and the guidance of HM Amit Shah, India has charted a new course--where modern innovations like Digital Currency are being used first to ensure food reaches the plates of the poor. He stated that beneficiaries will no longer have to wait for shopkeepers, as they can collect their entitled grain from a Grain ATM at any time, 24 hours a day, within just five minutes. The system guarantees precision, with not even a one-gram variation in weight, making it a strong example of 'Digital India' in action. He added that Gujarat's forward-looking model--integrating CBDC, Grain ATMs, and biometric-based systems--will serve as a guiding framework for the entire nation, ensuring that the rightful beneficiary receives their due transparently and without inconvenience.

Gujarat Leading the Fintech Transformation

In her welcome address, Mona Khandhar, Additional Chief Secretary of the Food and Civil Supplies Department, provided detailed insights into the entire program and its innovative initiatives. She stated that under the visionary leadership of Prime Minister Narendra Modi, India is steadily advancing toward a digital revolution. She added that with the introduction of India's Central Bank Digital Currency--e-Rupee--a new era of modern fintech has begun in the country, and Gujarat is poised to take a leading role in this transformation.

The event was attended by Union Minister of State for Food and Public Distribution, Nimuben Bambhaniya, Gujarat's Minister for Food and Civil Supplies; Ramanbhai Solanki, Minister of State; P.C. Baranda, Mayor of Gandhinagar; Miraben Patel, various MPs and MLAs, Secretary of the Department of Food and Public Distribution of the Government of India, Sanjeev Chopra, Executive Director of the Reserve Bank of India, P. Vasudevan, Executive Director of Punjab National Bank-PNB D. Surendran, along with central and state government officials, other dignitaries, and a large number of beneficiaries, the CMO noted. (ANI)

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