The Reserve Bank of India’s retail Central Bank Digital Currency (CBDC), known as the digital rupee, is making waves as it surpasses 120 million transactions valued at over ₹28,000 crore. With a growing user base over 8 million, the RBI is intensifying efforts to innovate and expand the digital ecosystem—especially focusing on programmability and cross-border integration, as emphasized by Deputy Governor T Rabi Sankar during a recent press conference.
Transaction Milestones and Expanding Reach
The retail CBDC pilot, which was launched on December 1, 2022, has enjoyed impressive growth in both transaction volume and circulation value. A staggering 120 million transactions have already been processed, amassing a cumulative value exceeding ₹28,000 crore. This achievement marks a significant step in Indian digital finance, strengthening the e-rupee’s role in everyday transactions.
Currently, the pilot includes 17 proactive banks and has an active user base of over 8 million. This remarkable growth has seen the value of retail e-rupee circulation surge by a staggering 334% in Financial Year 2025, reaching ₹1,016.5 crore as of March 2025. Such figures reflect not only the increasing acceptance of the digital currency but also the RBI’s proactive strategy in making digital payments a common practice among consumers.
Strategic Focus on Programmability and Use-Cases
As the retail CBDC matures, the RBI is keenly prioritizing programmability—a component that promises to unlock unique applications for the digital rupee. Deputy Governor T Rabi Sankar pointed out,
“We are focusing on creating unique use-cases for CBDC. From that point of view, we are focusing on programmability. There are many such programmable experiments and pilots, particularly in coordination with schemes of both the central government and state government as well as specific products of banks. They are under experimentation, and a large number of them.”
This commitment has set the stage for diverse initiatives from automated payments to innovative financial products—all within the framework of the CBDC.
Numerous experiments are already underway, partnering with various government schemes and specific bank initiatives. The RBI aims to create a robust ecosystem where the digital rupee not only facilitates traditional payments but also supports a multitude of financial applications that could revolutionize how Indian consumers engage with their money.
Pilot Expansion and Ecosystem Development
To foster a deeper engagement with users and developers, the RBI recently rolled out enhancements to the retail pilot, including offline payments and greater programmability features. These updates are critical in making the digital rupee accessible in various situations, thus increasing its utility.
Moreover, the RBI has introduced a retail sandbox, strategically crafted to enable fintech firms to develop and pilot CBDC-based solutions. This initiative not only encourages innovation within the financial technology sector but also broadens the range of available products that can utilize the digital rupee, setting a dynamic precedent for the future of digital finance in India.
Cross-Border Initiatives and Future Outlook
Looking ahead, the RBI focuses on the international dimensions of the digital rupee. Active exploration is ongoing regarding cross-border payments powered by CBDC, with bilateral and multilateral pilot projects in the pipeline. The central bank is keen to address ongoing challenges around payment efficiency and transparency, moving towards a digitally integrated global economy.
The RBI is also evaluating collaboration opportunities with the Bank for International Settlements Innovation Hub. Insights gained from these initiatives could bolster India’s position in the international financial scene, ensuring that the digital rupee is not just a domestic tool but a globally recognized payment method as well.
A Digital Revolution in Currency is Here
As India forges ahead with its digital rupee, there is palpable excitement surging through the financial ecosystem. With a commitment to programmability, strategic government partnerships, and robust cross-border ventures, the digital rupee is poised to become an integral part of everyday transactions for millions. Will it lead the way in making financial transactions simpler, faster, and more efficient for users? Only time will reveal the full impact of India’s innovative leap into digital currency, but one thing is clear: the future of money in India is undeniably digital.
