Amit Shah Launches Digital Ration System in Gujarat Using CBDC Tech

Union Home Minister Amit Shah inaugurated a Central Bank Digital Currency-based Public Distribution System in Gujarat's Gandhinagar. The system, developed with the RBI and other agencies, aims to bring transparency and eliminate corruption in food grain distribution to the poor. Shah highlighted the success of Digital India, noting that half of the world's digital transactions now occur in India. He expressed confidence that the new system would be implemented nationwide within 3-4 years.

Key Points: Amit Shah Inaugurates CBDC-Based PDS for Transparent Ration

  • CBDC-based PDS launched in Gandhinagar
  • Aims to eliminate middlemen & corruption
  • Features Aadhaar biometric authentication
  • Part of broader Digital India initiative
  • 'Annapurti' grain ATM also inaugurated
4 min read

Amit Shah inaugurates CBDC-based public distribution system in Gandhinagar

Union Home Minister Amit Shah launches a CBDC-based Public Distribution System in Gujarat, aiming to eliminate corruption and ensure food grains reach the poor.

Amit Shah inaugurates CBDC-based public distribution system in Gandhinagar
"Today, under the leadership of PM Modi, half of the world's digital transactions are taking place in India. - Amit Shah"

Gandhinagar, February 15

Union Home Minister Amit Shah on Sunday inaugurated a Central Bank Digital Currency-based Public Distribution System in Gujarat's Gandhinagar, marking a significant step in enhancing transparency in the country's food distribution network.

This initiative is part of Prime Minister Narendra Modi's Digital India campaign, which aims to improve the delivery of essential services to the public.

Speaking at the launch event here, Shah highlighted the transformation brought about by the Digital India initiative.

"When I use the term 'Digital India' and look back 11 years, we couldn't even imagine that 60 crore people in this country belonged to families that didn't have a single bank account. Today, under the leadership of PM Modi, half of the world's digital transactions are taking place in India. This is a monumental achievement," he said.

The newly launched system, which has been implemented with the help of the Reserve Bank of India (RBI), Food Corporation of India, state governments, and the Ministry of Electronics and Information Technology (MeitY), aims to eliminate middlemen in the food distribution process.

Shah explained that for many years, in remote and backward areas of India, food grains often failed to reach the poor due to corruption in the distribution system.

He praised the collaboration between various stakeholders, saying, "Today, with this new digital system, corruption will be completely eliminated from the food and supply department's method of providing rations to the poor, and the distribution of food grains will become transparent," Shah added.

The event saw the inauguration of the 'Annapurti' machine, a grain ATM developed in Gujarat, which Shah called a symbol of the country's technological progress.

"A wonderful confluence of technology and Modi ji's sensitivity towards humanity, his feelings for the poor, and his commitment to purity and truth can be seen here. Under the Public Distribution System (PDS) in Gujarat, 1kg of Tur dal, 1kg of chickpeas, salt, and sugar will also be distributed through these ATMs starting today. Today, the 'Annapurti' machine (Grain ATM), which is more than 'Made in India'--it is 'Made in Gujarat' has also been inaugurated," Shah added.

The new system also incorporates Aadhaar-based biometric authentication and aligns with the Central Bank Digital Currency (CBDC) infrastructure. This ensures that the entire food distribution process is secure, transparent, and efficient.

Shah expressed confidence that within the next 3-4 years, the system would be implemented nationwide, providing the poor with secure access to their full entitlement of 5kg of food grains.

Shah further highlighted how, over the past 11 years, the country's food distribution system has been significantly improved. "

"This will bring immense transparency to the food distribution program, providing security to the poor. This distribution system will become highly transparent. I remember 11 years ago: corruption began with weighing the grains. The weighing scales have now been digitised; fake ration cards were issued; E-ration cards were introduced. Then came the 'One Nation, One Ration Card' program. This system, now in place, will ensure complete transparency. Once this system is implemented nationwide, every poor person will have the right to receive their full 5kg of food grain. I have great faith in this."

Shah concluded by stressing that the Digital India initiative has brought immense transparency to the villages, noting that connectivity has now reached 1,07,000 villages, a major leap from just 500 villages during the Congress-led government.

"PM Narendra Modi ji has brought immense transparency to the villages through Digital India. During the Congress government, connectivity had reached only 500 villages; today, connectivity to 1,07,000 villages has been completed. Along with DBT, as Pralhad ji was mentioning and I was there too we were listening to PM Modi's words with great emotion in 2014 when he said that his government is a government for the poor, the backward, the Dalits, and the tribals."

The event was attended by Gujarat Chief Minister of Gujarat, Bhupendra Patel; Pralhad Joshi; Harsh Sanghavi, Minister of State (Home), Government of Gujarat; Nimuben Bambhaniya, Union Minister; Ramanbhai Solanki, Minister of State for Food and Civil Supplies; Poonambhai Baranda, Minister of State, Government of Gujarat; the Mayor of Gandhinagar, Meeraben Patel; Central Secretary Shri Sanjiv Chopra; Sister Mona Khandhar, Additional Chief Secretary, Government of Gujarat; and P Vasudevan, Executive Director of RBI.

- ANI

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Reader Comments

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Sarah B
As someone who has studied digital finance, the integration of Aadhaar and CBDC is technically sound. However, the success hinges on digital literacy in remote areas. The government must pair this with robust training programs.
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Priya S
My mother in our village still faces issues with her ration card. If this system can truly stop corruption at the Fair Price Shop, it will be a godsend for millions of families. The promise of transparency is long overdue. Let's see it on the ground.
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Rohit P
Made in Gujarat! 💪 Proud to see our state leading in such impactful tech innovation. Eliminating middlemen is the key. Hope the 'One Nation, One Ration Card' gets a major boost from this.
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Michael C
While the intent is commendable, I have a respectful criticism. Launching in Gandhinagar, a well-developed city, is one thing. The real test will be in the remote, backward areas Shah mentioned. The infrastructure and power supply there are still challenges that need addressing first.
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Kavya N
Digital India is transforming lives. From no bank accounts to leading in digital transactions – that's a massive leap. This PDS reform, if implemented well, will be the best use of technology for social welfare. Jai Hind!

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