Amit Shah launches e-Rupee–powered PDS, unveils 24x7 ‘Annapurti’ grain ATM in Gujarat

Amit Shah, Union Minister of Home Affairs and Co-operation

Union Home and Co-operation Minister Amit Shah on Sunday inaugurated the country’s first Central Bank Digital Currency (CBDC)-based Public Distribution System in Gandhinagar, Gujarat, terming it a “leak-proof” reform that will digitise and secure India’s flagship food subsidy programme.

Addressing stakeholders and officials at the launch event, Shah said the new system marks a decisive departure from direct benefit transfers. “Using this system, corruption will be fully eliminated from the PDS and beneficiaries will be provided rations in a transparent manner,” he added, highlighting the promise of real-time tracking and accountability in food entitlements.

Recalling past challenges, Shah noted that earlier inefficiencies — from manual weighing scales to fake ration cards — have been progressively tackled with digitisation and e-ration card rollouts over the past decade, and the CBDC-enabled system takes that transformation further. “Those weighing scales have been made digital. Ration cards used to be fake. E-ration cards were brought in. This system will bring in full transparency,” he said.

Pilot rollout across Gujarat districts under CBDC framework

The pilot covers beneficiary families in Ahmedabad, Surat, Anand and Valsad districts of Gujarat. Under the system, beneficiaries receive digital tokens — credits of e-Rupee (CBDC) in RBI-enabled digital wallets that specify the ration commodity, quantity and subsidised price. Beneficiaries with smartphones can scan a QR code at fair price shops to redeem their food entitlements, while feature-phone users authenticate transactions through Aadhaar-based one-time passwords (OTPs).

Union Minister Prahlad Joshi elaborated that the digital tokens are issued into RBI-linked wallets and can be used only for purchasing ration items at authorised shops. “This system ensures only eligible beneficiaries receive their rations in a timely manner,” he said, stressing that the CBDC tokens cannot be spent on other goods — a feature that helps prevent subsidy misuse and leakage.

Annapurti Grain ATM and packaging reforms

As part of the rollout, Gujarat also inaugurated an “Annapurti Grain ATM” — an automated dispensing machine that will operate 24×7. From March 2026, beneficiaries will be able to collect one-kilogram packets of tur dal, chana, sugar and salt, along with up to 25 kg of wheat and rice, directly from the machine. Officials say the machine can dispense up to 25 kilograms of grain in roughly 35 seconds.

Shah underscored the local manufacturing aspect of the ATM hardware. “The ATM is made in Gujarat,” he said, linking the launch to the state’s broader push for technology-led governance solutions. Additionally, the state government will begin supplying pulses like tur and chana in standardised one-kilogram sealed packs under the National Food Security Act to improve quality and hygiene compared to loose grain distribution.

Towards a nationwide transformation

Officials say the pilot will expand in phases to other regions, including Union Territories such as Chandigarh, Dadra and Nagar Haveli and Puducherry, where CBDC wallets will replace direct bank account transfers under the traditional Direct Benefit Transfer (DBT) model. Shah projected that the CBDC-enabled model could be scaled across all states in the next three to four years, positioning India as a pioneer in the use of programmable digital currency for social welfare delivery.

Published on February 15, 2026