RBI Plans to Explore Cross-Border CBDC Transactions with Singapore, UAE and Other Global Partners

The Reserve Bank of India (RBI) plans to carry forward its work on central bank digital currency (CBDC) by exploring cross-border payment pilots during FY27, as per PTI reports.  

The proposal includes both bilateral and multilateral arrangements involving selected use cases for international transactions.  

The plan follows discussions held with overseas central banks and participation in global projects focused on improving cross-border payment systems through digital currency infrastructure. 

Engagement with Singapore and UAE 

During FY26, the RBI signed a memorandum of understanding with the Monetary Authority of Singapore (MAS) on cooperation in the area of digital assets.  

The central bank also held discussions with MAS and the Central Bank of the UAE (CBUAE) on operational aspects of cross-border CBDC projects. 

The annual report noted that the RBI would continue participating in international initiatives that examine technical and governance frameworks for digital currency-based payment systems. 

Wider Use of Digital Rupee in India 

Apart from international projects, the RBI intends to expand domestic CBDC experiments. Additional use cases are being considered for direct benefit transfer (DBT) programmes and business-related applications. 

During FY26, programmable CBDC was used in public distribution system (PDS) schemes in Gujarat, Puducherry, and Chandigarh.  

Under these pilots, beneficiaries received subsidies through digital rupees that could be spent only on specified goods at authorised outlets. 

Asset Tokenisation Efforts 

The central bank is also examining the use of CBDC alongside tokenised financial assets. During the year, it developed the Unified Markets Interface (UMI), a platform intended to facilitate tokenisation and settlement using wholesale CBDC. 

A pilot involving tokenised certificates of deposit was initiated on the platform. The RBI also plans to introduce a framework under its CBDC and Asset Tokenisation Sandbox for testing products and services linked to digital currency infrastructure. 

Digital Rupee in Circulation 

As of March 31, 2026, the value of retail digital rupee (e₹-R) in circulation stood at ₹771.66 crore, compared with ₹1,016.46 crore a year earlier.  

The wholesale CBDC balance remained nil at the end of both FY25 and FY26 due to the automatic redemption mechanism used by participating institutions. 

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Conclusion 

The RBI's FY27 roadmap includes further testing of cross-border payments, digital rupee applications and tokenised asset settlement as work on the CBDC programme continues. 

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