Digital Currency Mode for Purchases from Ration Shops

Vijayawada: The Andhra Pradesh government is exploring the introduction of a Central Bank digital currency-based system in the civil supplies department to improve transparency, accountability and consumer choice in the public distribution system.

Civil supplies minister Nadendla Manohar, accompanied by civil supplies commissioner Kannababu, visited Gujarat on Friday to study the CBDC pilot project being implemented by the state’s civil supplies department. The team visited Gandhinagar and Ahmedabad to study the project and its operational framework.

The digital rupee-based CBDC system would provide ration card-holders with greater flexibility by enabling them to purchase essential commodities of their choice and in required quantities, instead of being limited to items supplied through the conventional public distribution system.

Ration card-holders can make payments using the digital rupee and procure commodities according to their individual needs.

The minister held discussions with Gujarat’s civil supplies officials on the implementation process, operational challenges, public response and the overall performance of the pilot project.

Manohar said technology-driven reforms were essential to modernise civil supplies services and ensure efficient utilisation of public funds.

The AP government, he said, is considering launching a CBDC pilot in Vijayawada and Visakhapatnam later this year.