PM Modi Launches Odisha's Subhadra Yojana, Integrating RBI's Digital Currency
Prime Minister Narendra Modi announced the launch of the Odisha government's Subhadra Yojana in Bhubaneswar on Tuesday, revealing that the initiative will incorporate the Reserve Bank of India's (RBI) digital currency pilot project. This integration will enable women beneficiaries in the state to utilize the digital currency for transactions.
During the launch, Modi expressed his gratitude to the women of Odisha for their participation in the scheme. He stated that the program aims to provide financial assistance of ₹50,000 to over one crore women across the state, with funds deposited directly into their bank accounts to ensure timely delivery.
The RBI initiated its central bank digital currency (CBDC) pilot program in 2022, which encompasses both retail (CBDC-R) and wholesale (CBDC-W) segments. The retail version is designed for everyday consumers, facilitating Person to Person (P2P) and Person to Merchant (P2M) transactions. In contrast, the wholesale version caters to institutional participants in financial markets.
In terms of direct benefit transfers (DBT), the central government successfully completed over 10 billion transactions totaling approximately ₹6.9 trillion during the 2023-24 fiscal year. As reported in RBI's recent currency and finance analysis, the retail CBDC pilot has witnessed significant growth, with customer participation rising to 5 million as of June 2024, up from 1.3 million the previous year. The number of participating merchants also increased from 300,000 to 420,000.
In its April monetary policy update, the RBI noted that the CBDC pilot programs are expanding, with increasing use cases and participation from banks. The central bank is enhancing accessibility for the CBDC-R by allowing non-bank payment system operators to offer CBDC wallets, thereby broadening options for consumers.
