CBDC in Ration Delivery: Amit Shah Rolls Out Digital Currency PDS for 26,333 Families

On 15 Feb 2026, Amit Shah launched a CBDC-based PDS pilot in Gujarat, covering 26,333 families, using digital tokens to tighten subsidy delivery and tracking.

What Is The Issue and Why It Has Surfaced Now?

Leakages and mismatch in entitlement delivery have remained a weak spot in India’s Public Distribution System (PDS), especially where monitoring is thin. To address this, the Centre and Gujarat rolled out a new model that shifts ration entitlements to digital tokens delivered through a CBDC-backed mechanism. 
 

On 15 Feb 2026, Union Home and Cooperation Minister Amit Shah inaugurated the country’s first CBDC-based PDS at Mahatma Mandir, Gandhinagar, with Gujarat CM Bhupendra Patel and Union Food Minister Pralhad Joshi present. 

How Gujarat’s CBDC-PDS Pilot Will Work?

The new system credits eligible beneficiaries’ digital wallets with tokens that specify the commodity type, quantity and price, so the subsidy is used only for the intended ration purchase. This is being described as a “Digital Food Currency” style entitlement layer within PDS.

The pilot phase covers 26,333 families across Ahmedabad (Sabarmati zone), Surat, Anand and Valsad, as reported ahead of the launch. 

Transactions are designed for mixed device access: smartphone users can redeem via QR codes, while feature phone users can use Aadhaar-based OTP at fair price shops. The CBDC platform is reported as RBI-authorised and developed by Punjab National Bank for this initiative.

Before the rollout details, here is the official and reported footprint.
 

After the pilot snapshot, the state also bundled operational changes that impact ration quality and dispensing speed.
 

What Led To This Pilot: The Build-Up and Earlier Signals?

In the days leading up to the inauguration, Gujarat’s food and civil supplies department signalled that the pilot would start with a limited footprint, focusing on districts with readiness and controlled monitoring. The 26,333 families figure and the district list were published before the launch, indicating a measured first phase rather than a statewide switch.

On the day of the event, official communication described the initiative as part of a broader push for digital governance in welfare delivery, with the CBDC-backed layer aimed at curbing diversion and improving end-to-end visibility.

There were also hints of expansion beyond Gujarat. News reporting from Chandigarh said a pilot to use e-rupee coupons for food subsidy distribution was expected around mid-Feb 2026, with mentions of tests in Puducherry and select Gujarat districts.
 

For background reading on the digital rupee context in simpler terms, this LoansJagat explainer dated 8 Oct 2025 is a handy reference.

What Stakeholders Are Saying?

Shah said the digital token model would prevent diversion and ensure beneficiaries get what is due through a fully digital trail. Joshi called CBDC integration a milestone PDS reform, while News On Air reported plans to extend pilots to UTs like Chandigarh and Puducherry. 

Conclusion

The Gujarat pilot puts subsidy delivery on a token-led track, with clear rules on what can be bought and how it is redeemed. The next few weeks will show whether QR and OTP redemption can run smoothly at ration shops, at scale.