Subhadra first govt scheme to offer digital rupee payment

NEW DELHI: Subhadra Yojana, the new direct transfer scheme for women in Odisha, has become the first govt initiative through which beneficiaries will have the option to receive Rs 10,000 annually in the Central Bank Digital Currency (CBDC), popularly known as the 'digital rupee'.

Around 12,000 beneficiaries, who received the first installment of the annual payout, were informed about the deposit through text messages in Odiya and English. PM Narendra Modi, while launching the scheme on Tuesday, said, "The money will go directly into your bank accounts, there are no middlemen. It is linked to RBI's digital currency pilot. This digital currency can be spent whenever you want."

RBI is currently running pilots for its digital rupee. As of now, there are around 60 lakh users, of which 55 lakh are retail users.

While banks have been using digital currency for transactions related to govt securities and carbon credits, after the launch of Subhadra Yojana more govt schemes may be added. Odisha is among the states where the CBDC pilot was launched towards the end of 2022, said officials.

RBI has stated that CBDC can be used to better deliver targeted subsidies.

Rolling out the scheme has meant that RBI officials in Mumbai and Bhubaneswar have worked with state govt officials, with bank branches doing the groundwork, including opening digital rupee wallets and explaining how it can be spent.

While the digital rupee in the wallet can be spent using UPI QR codes, beneficiaries will also have the option to transfer it into their bank account or withdraw cash.