The Reserve Bank of India (RBI) is set to broaden its digital rupee pilots by introducing new features aimed at enhancing financial inclusion and expanding the utility of its central bank digital currency (CBDC). According to the RBI’s Annual Report for 2024–25, the central bank plans to implement programmability and offline capabilities in both retail and wholesale versions of the digital rupee.
Programmability will allow for conditional payments, enabling targeted disbursements such as government subsidies or corporate spending controls. Offline functionality is designed to facilitate transactions in areas with limited internet connectivity, thereby extending the reach of digital payments to remote regions.
The retail CBDC pilot has been conducted with select customers and merchants through participating banks, reaching 600,000 users across 17 banks. To further scale adoption, the RBI has permitted certain non-bank entities to offer CBDC wallets.
The wholesale CBDC pilot, targeting interbank transactions, has also seen increased institutional interest. The scope of the wholesale pilot was expanded with the addition of four standalone primary dealers, diversifying participation in the program.
In addition to domestic enhancements, the RBI is exploring cross-border CBDC pilot projects to improve international payment systems. This initiative aims to enhance the global usability of the digital rupee and modernize India’s financial infrastructure.
The RBI’s efforts align with India’s leadership in digital payments. During the financial year 2024–25, digital payments in India grew significantly, with total digital payments recording a growth of 34.8% in volume and 17.9% in value. The Unified Payments Interface (UPI) contributed to this growth, placing India at the forefront of global real-time payments by volume.
The expansion of the digital rupee pilots, along with the introduction of new features, underscores the RBI’s commitment to fostering innovation in the digital payments ecosystem and promoting financial inclusion across the country.
