The Government of India launched a Central Bank Digital Currency (CBDC)-based Digital Food Currency pilot in Puducherry under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY). Food subsidy will be credited directly into beneficiaries' CBDC wallets instead of bank accounts, and they can use digital coupons to buy entitled foodgrains at Fair Price Shops under the PDS. The Digital Rupee (e₹) is issued by the RBI. The pilot seeks transparency, real-time tracking and secure DBT, and will later expand to Chandigarh and Dadra and Nagar Haveli after review.