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e-KYC registration mandatory for purchasing ration under CBDC scheme in Union Territory
The CBDC-based ration distribution system began in the Union Territory on February 26, 2026, with beneficiaries receiving a three-month digital currency e-wallet. e-KYC registration is mandatory to receive the digital currency; those who have already completed e-KYC are exempt. The Department of Civil Supplies announced free e-KYC at Common Service Centres and planned special camps from May 2026 onward.
Why It Matters
This marks a shift from cash-based ration transfers to a digital currency system, tying benefits to verified identities and potentially affecting PM Garib Kalyan Yojana beneficiaries.
Timeline
2 Events
e-KYC mandatory for CBDC benefits; exemptions for updated accounts
May 9, 2026
The Department of Civil Supplies directed PM Garib Kalyan Yojana beneficiaries to complete mandatory e-KYC registration under the CBDC system. Beneficiaries who have already updated their e-KYC are not required to redo it. Those who have not completed their e-KYC should visit the nearest Common Service Centre with Aadhaar and Ration cards; the e-KYC process will be completed free of cost. Only beneficiaries who complete e-KYC will be eligible to receive the digital currency. Special camps will be held in each constituency from May 2026 onwards.
CBDC-based ration distribution begins in the Union Territory
February 26, 2026
The CBDC system became effective in the Union Territory, replacing the Direct Benefit Transfer - Cash model for ration distribution to ration card holders. Under the new scheme, beneficiaries will be issued digital currency (an e-wallet) valued for three months from the date of issuance, which can be used to purchase rice within the validity period.