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Technology
J&K Government and PNB to Roll Out CBDC for Public Distribution System
✍️ Daily Excelsior
🗓 22 Oct 2026, 06:01 AM
👁 10
The Jammu and Kashmir administration, in partnership with Punjab National Bank, will introduce a central bank digital currency for transactions under the Public Distribution System.
The administration of Jammu and Kashmir announced that it will work with Punjab National Bank to deploy a central bank digital currency (CBDC) for the state's Public Distribution System (PDS). The collaboration aims to digitise subsidy payments and streamline the distribution of essential commodities.
CBDC, a digital form of the Indian rupee issued by the Reserve Bank of India, is being explored by several Indian states as a tool to improve transparency and reduce leakages in welfare schemes. By integrating the digital currency into the PDS, the government expects faster settlement of transactions and better tracking of beneficiary entitlements.
Implementation details, including the rollout timeline and the technology platform to be used, are being finalised by the two parties. Officials indicated that the pilot will initially cover a limited number of districts before expanding statewide, subject to performance assessments.
CBDC, a digital form of the Indian rupee issued by the Reserve Bank of India, is being explored by several Indian states as a tool to improve transparency and reduce leakages in welfare schemes. By integrating the digital currency into the PDS, the government expects faster settlement of transactions and better tracking of beneficiary entitlements.
Implementation details, including the rollout timeline and the technology platform to be used, are being finalised by the two parties. Officials indicated that the pilot will initially cover a limited number of districts before expanding statewide, subject to performance assessments.