Subsidy via digital rupee may start with edu loans

The government is considering paying subsidy amounts through a pre-programmed digital rupee (e₹), and the country's youth could be among the first beneficiaries to get education loan subsidies through the central bank's digital currency by mid-February, two officials said.

- Rajeev Jayaswal & Zia Haq

The government is working out the modalities to pay 3% interest subvention enabled through the central bank digital currency (CBDC) process to the first batch of 100,000 poor students for higher studies under the PM-Vidyalaxmi Yojana, said the officials who did not wish to be named.

"The loans will be extended through one of the public sector banks by February 2025, and the template, which will have programmability features, could be used for providing other specific-purpose farm subsidies," one of them said.