Overview
From 26 February 2026, Puducherry made e-KYC registration compulsory for all Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) beneficiaries. They now get food subsidy through Central Bank Digital Currency (e₹) instead of cash. The digital wallet works for three months and can only buy rice and other grains at Fair Price Shops.
What Changed in Puducherry?
The government made e-KYC registration mandatory for PMGKAY beneficiaries in Puducherry. This rule started on 26 February 2026. People need e-KYC to buy ration using the new digital currency called e₹. This scheme replaces the old Direct Benefit Transfer (Cash) model in this Union Territory.
What is Central Bank Digital Currency?
Central Bank Digital Currency is a digital form of money. A central bank issues it. In India, this digital currency is called e₹. The Reserve Bank of India issues e₹. It is not like cryptocurrency because a central bank backs it.
How Does the Puducherry Pilot Work?
The pilot project for CBDC-based food subsidy began in Puducherry on 26 February 2026. Beneficiaries get an e-wallet. This wallet stays valid for three months from the date of issue. People can use the digital currency only to buy rice and other foodgrains. They can spend it at Fair Price Shops and other approved merchant outlets.
What is the e-KYC Rule for Ration Cards?
Beneficiaries who have not completed e-KYC must visit Common Service Centres. They need to bring their Aadhaar card and ration card. The e-KYC process at these centres is free. Also, the Central Government has made e-KYC mandatory for all ration card holders every five years. This rule came from the Targeted Public Distribution System (Control) Amendment Order, 2025. That order started on 22 July 2025.
Where Will This Scheme Expand Next?
The CBDC-based food subsidy pilot will expand to more places by June 2026. The new areas are Chandigarh, Dadra and Nagar Haveli, and Daman and Diu. The Reserve Bank of India generates the digital coupons for this scheme.
FAQ Section
Q1: When did e-KYC become mandatory for PMGKAY beneficiaries in Puducherry?
A: From 26 February 2026.
Q2: What is the new digital currency called in India?
A: It is called e₹ (Digital Rupee).
Q3: Who issues e₹ in India?
A: The Reserve Bank of India issues e₹.
Q4: How long is the e-wallet valid in Puducherry?
A: The e-wallet is valid for three months from the date of issue.
Q5: Where can beneficiaries use the digital currency?
A: Only at Fair Price Shops and authorised merchant outlets for buying rice and foodgrains.
Q6: What must beneficiaries do if they have not done e-KYC?
A: They must visit Common Service Centres with their Aadhaar and ration card. The service is free.
Q7: How often must ration card holders complete e-KYC under the new rule?
A: Every five years, as per the Targeted Public Distribution System (Control) Amendment Order, 2025 (started 22 July 2025).