Decline in Retail CBDC Circulation Observed for FY26 Despite RBI's Initiatives

The Reserve Bank of India (RBI) reported a notable 24.08% reduction in the value of retail central bank digital currency (CBDC) in circulation during the fiscal year 2025-26. This decline occurred despite ongoing pilot projects aimed at testing the efficacy and adoption of the digital currency.

By the close of March 2026, the 'e₹-Retail (e₹-R)' in circulation valued at Rs 771.66 crore had fallen from Rs 1,016.46 crore a year prior. Furthermore, the 'e₹-Wholesale (e₹-W)' figure remained unchanged at zero, reflecting a continued lack of circulation due to its end-of-day auto-redemption by financial institutions.

Innovative pilot programs were undertaken, including direct benefit transfers to public distribution system beneficiaries in Gujarat, Puducherry, and Chandigarh. These initiatives utilized programmable CBDC to enhance subsidy distribution efficiencies. Additionally, the RBI developed the Unified Markets Interface (UMI) to promote the tokenisation of financial assets and cross-border payment collaborations, secured through a memorandum with the Monetary Authority of Singapore.

(With inputs from agencies.)