Centre to launch digital currency ration system in seven states

Central Government is starting a digital currency-based ration purchase system under SMART-PDS in seven states, including Kerala. This system is for priority ration card holders, specifically those with yellow, pink, and Priority Households cards.

How the system works

Central Government will credit a fixed amount of digital currency to beneficiary e-wallets each month. Beneficiaries get their monthly entitlement details on mobile phones and can choose items to buy. Payments move digitally from the e-wallet to the ration dealer. Use of this balance is limited to ration items only.

This initiative uses a modified version of existing Electronic Point of Sale software and starts as a pilot project in select districts. The system helps Central Government monitor stock levels so dealers cannot falsely claim items are out of stock.