Government launches a digital rupee test project to distribute subsidised food

The Indian government has launched a project to distribute subsidised food under government schemes through coupons, it said in a press release. The project is in a pilot phase and its extent is limited to the union territory of Puducherry.

Citizens who are eligible for subsidised food will receive funds in to their bank accounts in the form of e-rupee. Digital coupons will be generated through the Reserve Bank of India CBDC (Central Bank Digital Currency) Framework, and beneficiaries can redeem their entitled quantity of foodgrain at Fair Price Shops or merchant outlets using these coupon or voucher codes.

Food is being distributed under the PMGKAY scheme, which provides wheat, rice and millets to beneficiaries.

The government says that two million calls are being made to beneficiaries every month, using artificial intelligence, to gather feedback about the quantity and quality of food grains they received.