The Central Government is launching a new digital ration subsidy system in Chandigarh and Dadra and Nagar Haveli from August 14, 2026.
Under this scheme, ration subsidies will be sent directly to beneficiaries through a Digital Rupee wallet instead of a bank account.
The move is aimed at stopping the misuse of food subsidies provided under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) and ensuring the money is used only to buy ration.
Money Can Only Be Used to Buy Ration
The biggest feature of this scheme is that the digital money has a fixed purpose. Beneficiaries can use the amount only to buy food grains such as wheat and rice from government ration shops.
Earlier, the subsidy was transferred to bank accounts, where people could spend it on anything.
With the new system, the money cannot be used for mobile recharges, clothes, alcohol, or any other purchases.
Payments can only be made by scanning QR codes available at government ration shops. The model was first tested in Puducherry and Gujarat, and after successful trials, it is now being introduced in these two Union Territories.
How to Get the Digital Wallet
To receive the subsidy, beneficiaries must download and activate the PNB Digital Rupee app on their smartphone.
After that, they need to visit the nearest ration office or a special registration camp with their Aadhaar-linked mobile number to complete KYC and registration. For any help, they can call the toll-free helpline 1800-180-2068.
Subsidy Must Be Used Within 30 Days
The ration subsidy credited to the wallet will remain valid for 30 days only. If the beneficiary does not use the amount to buy ration within that period, the money will automatically return to the government’s account.
Since every transaction is recorded in real time, the government can easily monitor whether the subsidy has been used correctly and ensure it reaches the right beneficiaries.
