RBI to Scale Up Digital Rupee Trials, Considers Cross-Border CBDC Applications

The Reserve Bank of India (RBI) has shared its intent to scale up the digital rupee pilot projects across the retail and wholesale sectors. As outlined in the Annual Report 2024–25, the central bank is preparing to introduce additional features and use cases for its central bank digital currency (CBDC), marking a significant phase in its digital currency roadmap.

RBI to Scale Up Digital Rupee Pilot Initiatives

The digital rupee pilot programme was first introduced by the RBI in 2022, with the wholesale version beginning in November and the retail version following in December. These initiatives allowed select banks to operate within a restricted environment, testing the core infrastructure and feasibility of a digital currency system under the RBI’s supervision.

Cross-Border CBDC Payment Use Cases Under Evaluation

A noteworthy update from the RBI's report is the exploration of cross-border CBDC payment solutions. The bank is looking into both bilateral and multilateral arrangements, which could eventually facilitate the use of the digital rupee for international settlements. This move suggests that the digital rupee may soon play a part in cross-border financial ecosystems.

Read More: CRED & MobiKwik Integrate RBI’s Digital Rupee! 

Integration of CBDC with Digital Wallet Platforms

Several fintech companies have begun rolling out solutions that integrate with the digital rupee system. Earlier this year, Mobikwik introduced a fully functional e-rupee wallet in collaboration with the RBI and YES BANK. This wallet supports peer-to-peer and peer-to-merchant transactions and is compatible with the Unified Payments Interface (UPI), enabling payments via existing QR codes.

CRED also launched a beta version of its digital rupee wallet in January, developed alongside the RBI and YES BANK as the sponsor. These wallet solutions are available to Android users and are contributing to the broader testing and adoption of the digital currency.

Conclusion

With the expansion of pilot programmes and increasing participation from technology platforms, the RBI is laying the foundation for a more dynamic digital currency system. The integration of new use cases, especially those involving cross-border payments, reflects an evolving vision for the role of CBDC in India’s financial framework.

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