Ahmedabad: The Food, Civil Supplies and Consumer Affairs Department of the Government of Gujarat has marked a significant milestone in modernising the state’s Public Distribution System (PDS) with the launch of the Proof of Concept (PoC) of the ‘Digital Food Currency’ (CBDC) pilot project in Ahmedabad, an official statement said.

The PoC was formally launched by Additional Chief Secretary, Food, Civil Supplies and Consumer Affairs Department, Mona Khandhar, from a fair price shop operated by Sureshkumar Ambalal Patel at Ranip in the Sabarmati zone. The initiative has been undertaken in collaboration with the Government of India and the Reserve Bank of India.

Biometric-Free, QR Code–Based Ration Distribution

Under the new system, ration card holders are relieved from biometric authentication hassles. Beneficiaries receive monthly digital food coupons directly into an RBI-enabled digital wallet on their mobile phones on the first day of every month. At the fair price shop, beneficiaries simply scan the shopkeeper’s QR code to redeem their coupons and collect foodgrains.

Key Features and Benefits

Freedom from server and biometric issues: The earlier e-POS–based delays caused by fingerprint mismatches or server downtime are eliminated.

Faster distribution: A simple QR code scan replaces lengthy processes, resulting in significant time savings.

Complete transparency: Beneficiaries can view, in advance, the monthly entitlements on their mobile screens and receive real-time digital receipts after redemption, clearly indicating the government’s expenditure on their behalf.

Real-time data updates: Shopkeepers receive instant updates on stock and transactions.

Addressing the gathering, Mona Khandhar stated that the PoC of the CBDC-based Digital Food Currency has been rolled out on a real-time basis, with testing conducted among approximately 25 beneficiaries. She explained that although separate digital coupons are issued for different commodities, all coupons can be redeemed in a single transaction, making the system extremely efficient and user-friendly.

She added that the technology would serve as a strong instrument for ensuring transparency while extending benefits seamlessly to the last mile, and that additional items and options could be integrated for beneficiaries in the future.

Positive Feedback from Stakeholders

As per the official statement, the pilot has received highly encouraging feedback from both beneficiaries and fair price shop operators. Compared to the earlier e-POS machine–based system, which was often disrupted due to server or biometric failures, the mobile and QR code–based mechanism was found to be simpler, faster, and more reliable. The system has been implemented with technical support from Punjab National Bank, further strengthening its operational robustness and transparency.

The launch event was attended by Ahmedabad Food Controller Vimal Patel, Joint Director Chetan Gandhi, other departmental officials and staff, along with beneficiaries and stakeholders from the Sabarmati zone. DeshGujarat