RBI Expands Digital Rupee Pilots With New Features, 600,000 Users

The Reserve Bank of India (RBI) is set to broaden the reach of its digital rupee pilots by introducing new use cases and features for both its retail and wholesale central bank digital currencies (CBDCs). According to the central bank’s Annual Report for 2024–25, the RBI aims to explore programmability and offline capabilities for the digital rupee. These features may increase its applicability in areas with limited internet access and tailor payments for specific use cases such as government subsidies or corporate spending controls.

Currently, both versions of the CBDC are undergoing pilot testing. The retail CBDC pilot is being conducted with select customers and merchants through participating banks, while the wholesale pilot is targeting use in the interbank market. The retail pilot has reached 600,000 users across 17 banks. To further scale adoption, the RBI has allowed “certain non-banks [...] to offer CBDC wallets.” The wholesale pilot has also seen increased institutional interest. The scope of the wholesale was further expanded and diversified with the addition of four standalone primary dealers (SPDs).

During the financial year 2024–25, digital payments in India experienced significant growth, both in terms of volume and value. The RBI noted that the Unified Payments Interface (UPI) “placed India in a leadership position with a share of 48.5 percent in global real-time payments by volume.” The central bank said several innovative features were introduced to extend the benefits of digital payments to wider segments of society. For instance, the “Delegated Payments” feature was rolled out, allowing “individuals (primary user) to allow another individual (secondary user) to make UPI transactions up to a limit from the primary user’s bank account.”

This expansion of the digital rupee's use cases and functionalities marks a significant step in the evolution of India's digital currency landscape. The RBI's 2024–25 annual report highlighted the intention to roll out international functionalities for the digital rupee, indicating a strategic shift towards global integration. This move is expected to enhance the efficiency, transparency, and security of cross-border transactions, aligning with the broader goal of creating a more robust and fraud-resistant payment infrastructure.

The digital rupee has seen a notable increase in circulation, with the RBI reporting a surge to Rs 1,016 crore by March 2025. This growth is accompanied by an expansion of pilot programs to 17 banks and 60 lakh users, demonstrating the increasing adoption and acceptance of the digital currency among the public. The RBI's efforts to link the foreign exchange platform with Bharat Connect further underscore its commitment to broadening digital access and simplifying cross-border transactions.

The central bank's focus on cross-border use cases for the digital rupee is part of a broader strategy to position India as a leader in the global digital currency landscape. By exploring new functionalities and expanding the scope of its digital currency pilots, the RBI aims to create a more efficient and secure payment system that can compete on the international stage. This initiative is expected to drive innovation in the financial sector, fostering a cashless economy and enhancing the overall financial infrastructure of the country.