Prime Minister Narendra Modi on Tuesday inaugurated Odisha’s Subhadra Yojana, a pivotal scheme aimed at empowering women across the state. At the launch event in Bhubaneswar, Modi emphasized the integration of the Reserve Bank of India’s (RBI) digital currency into the scheme, marking a significant step in modernizing financial transactions for beneficiaries.
The Subhadra Yojana, an ambitious initiative by the Odisha government, is set to provide financial assistance of approximately ₹50,000 to over 1 crore women throughout the state. This financial aid will be delivered directly to the beneficiaries’ bank accounts, ensuring timely and efficient distribution. Modi praised the women of Odisha for their participation and support, highlighting the scheme’s potential to enhance economic independence and security for many families.
In his address, the Prime Minister underscored the significance of integrating the RBI’s digital currency into this initiative. Launched in 2022, the RBI’s central bank digital currency (CBDC) pilot program encompasses both retail (CBDC-R) and wholesale (CBDC-W) segments. CBDC-R is designed for retail consumers, facilitating Person-to-Person (P2P) and Person-to-Merchant (P2M) transactions. Conversely, CBDC-W caters to institutional participants within the financial markets.
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The adoption of CBDC-R within the Subhadra Yojana aligns with the central government’s broader vision of digital financial inclusion. By incorporating digital currency into the scheme, the government aims to streamline financial transactions, reduce processing times, and enhance transparency. This move reflects a broader trend towards digitalization in financial services, which has seen significant growth in recent years.
According to the RBI’s currency and finance report, the retail CBDC pilot has witnessed a substantial increase in usage, with customer numbers soaring from 1.3 million in June 2023 to 5 million by June 2024. Merchant adoption has also grown, reaching 0.42 million, up from 0.3 million over the same period. The central bank’s efforts to expand the accessibility of CBDC-R, including allowing non-bank payment system operators to offer CBDC wallets, are aimed at broadening the reach and utility of digital currency.
During the 2023-24 fiscal year, the central government conducted over 10 billion direct benefit transfer (DBT) transactions amounting to approximately ₹6.9 trillion. This demonstrates the extensive scale of digital transactions in the country and highlights the importance of integrating digital currency solutions to support efficient and inclusive financial systems.
The launch of Subhadra Yojana with RBI’s digital currency integration marks a significant advancement in the intersection of technology and social welfare, promising to enhance financial inclusion and support economic growth across Odisha.
