CBDC Surge: India's Digital Currency Revolution Expands

The Reserve Bank of India (RBI) announced a significant rise in the circulation of its central bank digital currency (CBDC), the e-rupee, which valued at Rs 1,016 crore by the end of March 2025, compared to Rs 234 crore a year ago. The revelation came in the bank's annual report.

Acknowledging the ongoing pilot projects, the RBI outlined its strategic direction for cross-border CBDC pilots, both in bilateral and multilateral settings, aimed at addressing issues of turnaround time, efficiency, and transparency in international transactions. Bilateral agreements with select countries are in advanced stages, while multilateral efforts under the Bank for International Settlements (BIS) Innovation Hub are under consideration.

The e-rupee's retail pilot expanded its reach to 17 banks and 60 lakh users, incorporating offline and programmability features. Efforts to enhance adoption include allowing certain non-banks to offer CBDC wallets. The programmability feature is leveraged for targeted benefits like direct benefit transfers and employee allowances. In Odisha, e-rupee payments reached 88,000 beneficiaries under the Subhadra Yojana.

(With inputs from agencies.)