- The Digital Rupee (e₹) is India’s Central Bank Digital Currency (CBDC), issued by the Reserve Bank of India (RBI).
- It is a legal tender in digital form, mirroring the value of physical ₹ and backed by the RBI.
- e₹ offers cash-like features such as instant settlement, offline usability (in pilot), and secure storage in digital wallets.
Key Features of Digital Rupee
- Storage: Stored in a digital wallet on mobile phones, similar to a physical wallet.
- Availability: Usable 24×7, even outside banking hours.
- No Interest: Like cash, no interest is paid on e₹ balances.
- Free to Use: No charges or fees for usage or wallet maintenance.
- Denominations: Available in the same denominations as physical ₹, with built-in functionality to manage change.
e₹ Wallet
- Offered by 15 pilot banks and select non-banks.
- Available on Android and iOS platforms.
- Can be used for person-to-person (P2P) and person-to-merchant (P2M) transactions via CBDC or UPI QR codes.
- Safe and secure, with wallet recovery possible even if the device is lost.
How to Use
- Download the respective bank’s e₹ app.
- Link to savings account (KYC simplified).
- Use for payments, transfers, and offline transactions (in select cases).
Participating Banks (Retail CBDC)
Some of the major banks include:
- SBI – eRupee by SBI
- ICICI Bank, HDFC Bank, YES Bank, Axis Bank
- Union Bank, Bank of Baroda, PNB, Indian Bank, etc.
(All apps available on Google Play Store and Apple App Store.)
Difference Between e₹ and UPI
| Feature | e₹ | UPI |
|---|---|---|
| Nature | Digital form of ₹ (currency) | Payment interface |
| Settlement | Direct between wallets | Routed through bank accounts |
| Store of Value | Yes | No |
Advanced Features
- Offline Payments: Enables transactions in low/no internet areas (under testing).
- Programmability: Funds can be restricted for specific uses (e.g., subsidies, allowances).
Wholesale CBDC (e₹-W)
- Meant for interbank settlements and large-value transactions.
- Currently used for:
- G-Sec market settlements
- Inter-bank call money transactions
- Offers programmability, smart contracts, and reduces settlement risk and cost.
Participants in e₹-W
- Includes 14 institutions (banks and non-banks) participating in the wholesale CBDC pilot.
The Digital Rupee (e₹) represents a significant step in India’s financial digitalization, aimed at enhancing payment efficiency, financial inclusion, and monetary innovation. With pilots in place for both retail and wholesale use, RBI is testing its scalability, security, and usability across diverse segments.
