Amit Shah launches e-Rupee powered PDS and unveils 24×7 ‘Annapurti’ grain vending machine in Gujarat

Amit Shah, Union Minister of State for Home Affairs and Cooperation

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

Recalling past challenges, Shah noted that previous inefficiencies – from manual scales to fake ration cards – have been gradually addressed over the past decade with digitalization and the rollout of e-ration cards, and the CBDC-enabled system takes that transformation even further. “These weighing scales have been made digital. Ration cards used to be fake. E-ration cards were introduced. This system will bring complete transparency,” he said.

Pilot rollout in Gujarat districts under CBDC framework

The pilot project 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-compliant digital wallets that specify the ration, quantity and subsidized price. Beneficiaries with smartphones can scan a QR code at fair price stores to redeem their food allowances, while feature phone users authenticate transactions through Aadhaar-based one-time passwords (OTPs).

Union Minister Prahlad Joshi explained that the digital tokens will be issued in RBI-linked wallets and can only be used for purchasing ration items from authorized stores. “This system ensures that only eligible beneficiaries receive their rations in a timely manner,” he said, emphasizing that the CBDC tokens cannot be spent on other goods – a feature that helps prevent misuse and leakage of subsidies.

Annapurti Grain ATM and Packaging Reforms

As part of the rollout, Gujarat has also inaugurated an “Annapurti Grain ATM” – an automated dispensing machine that will operate 24×7. From March 2026, beneficiaries will be able to get 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 about 35 seconds.

Shah highlighted 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-based governance solutions. Moreover, the state government will start supplying pulses such as tur and chana in standardized sealed packages of one kilogram under the National Food Security Act to improve quality and hygiene compared to the distribution of loose grains.

Towards a national transformation

Officials said the pilot will be expanded 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 predicted that the CBDC-enabled model could be scaled up across states over the next three to four years, positioning India as a pioneer in the use of programmable digital currencies for social services.

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Published on February 15, 2026