India accounts for more than half of the world's total digital transactions, Union Home Minister Amit Shah said on Sunday while launching the country's first Central Bank Digital Currency (CBDC)-based Public Distribution System (PDS) in Gujarat's Gandhinagar.
Speaking at a function held at Mahatma Mandir, HM Shah said India's rapid digital transformation over the past decade had enabled the government to integrate advanced technology into welfare delivery.
"A decade ago, nearly 60 crore people in the country did not have bank accounts. Today, India is leading the world in digital transactions, and more than half of the global digital transactions are taking place in India," he said, extending greetings on the occasion of Mahashivratri.
He inaugurated a transparent and technology-driven PDS based on CBDC, integrated with Aadhaar-based biometric authentication and the Reserve Bank's payment systems.
HM Shah said the initiative would remove leakages in subsidised food grain distribution. "With a technology-based system like CBDC, corruption and the role of middlemen will be completely eliminated," he said, adding that the model would be implemented nationwide within the next three to four years.
The programme included the launch of the 'Annapurti' Grain ATM in the Sabarmati zone of Ahmedabad, which can dispense 25 kilograms of food grains within 35 seconds with accuracy in weight, price and quality.
Distribution of 'chana' and 'tur' dal in sealed one-kilogram packs was also introduced, along with the 'Garima Poshan – Suposhit Garudeshwar Taluka' campaign.
The Union Minister said that under the 'Pradhan Mantri Garib Kalyan Yojana', 81 crore people are receiving free ration and that digitisation would make the system more transparent.
He also referred to welfare initiatives undertaken over the past decade, stating that four crore houses had been constructed under the 'Pradhan Mantri Awas Yojana', tap water connections provided to 13 crore households, gas cylinders to around 13 crore homes and toilets built in 12 crore households.
He added that 2.91 crore women had become 'Lakhpati Didis', reflecting broader efforts at inclusive development.
Gujarat Chief Minister Bhupendra Patel said the integration of Jan Dhan accounts, Aadhaar and mobile connectivity had enabled direct transfer of benefits to eligible citizens.
He stated that the Grain ATM would operate round the clock, allowing beneficiaries under the National Food Security Act to collect wheat, rice and pulses at their convenience.
"Through digital tokens under the CBDC system, beneficiaries will receive precise information about subsidy, quantity and price, ensuring full transparency," he said.
Union Minister for Food and Public Distribution Pralhad Joshi said the initiative was aimed at safeguarding the rights of nearly 80 crore beneficiaries.
He said digitisation of ration cards had enabled the 'One Nation, One Ration Card' framework and that beneficiaries could access food grains by scanning QR codes at Grain ATMs or through SMS-based OTP verification.
"With the implementation of this technology, an estimated two to three crore fake ration cards have been cancelled," he said, adding that the digital amount credited to beneficiaries' wallets could only be used to purchase subsidised grains.
Deputy Chief Minister Harsh Sanghavi said the system would reduce queues at ration shops and allow beneficiaries to collect food grains at any time. "There will not be even a one-gram difference in weight," he said.
During the event, Memoranda of Understanding were signed between the Food and Civil Supplies Department and the Consumer Education and Research Centre to establish a pre-litigation grievance redressal mechanism.
Separate agreements were also signed with Care Ratings and the Consumer Education and Research Centre to develop a Consumer Responsibility Index aimed at strengthening accountability in the public distribution system.
(With inputs from IANS)
