Public Distribution System (PDS) - Aadhaar-based food grain distribution

Digital ID is used for real-time biometric authentication of beneficiaries at fair price shops (FPS) during subsidized food grain distribution.

India's PDS is one of the world's largest food security programs, with ration cards issued per household to cover all family members. In 2015, India transformed PDS through Aadhaar integration and installation of electronic point-of-sale (ePoS) devices at FPS outlets. Beneficiaries need to authenticate their identity through a fingerprint or iris scan at the point of transaction before they receive their entitled rations of rice, wheat, and other essential commodities. As of July 2025, 201 million out of 202.1 million ration cards have been seeded with the Aadhaar, extending benefits to 774 million beneficiaries out of the 806 million enrolled under the PDS. As of May 2023, biometric authentication through ePoS devices covers approximately 97% of monthly PDS transactions nationwide, which ensures transparent distribution.

The Aadhaar-based PDS system has reduced diversion of subsidized grains to black markets. It has eliminated ghost beneficiaries and enabled portability through the One Nation One Ration Card scheme, which allows beneficiaries to collect rations from any FPS across India. The program also provides real-time transaction monitoring for government oversight, ensures intended beneficiaries receive their full entitlements, and generates significant fiscal savings by plugging leakages estimated at more than INR 14,000 million annually.