The Reserve Bank of India has outlined ambitious plans to expand CBDC pilots to cover new use cases under direct benefit transfer (DBT) schemes and the domestic retail space, as detailed in its latest annual report. According to RBI, future efforts would focus on scaling up pilots, adding new participants and testing broader applications of tokenised financial assets and programmable digital currency in both government transfers and retail payments. The central bank emphasized that these initiatives aim to deepen the use of digital currency and improve financial market infrastructure through tokenisation and cross-border payment collaborations. The RBI's comprehensive approach reflects its commitment to exploring the full potential of CBDC technology across multiple sectors of the Indian economy.
On cross-border initiatives, the central bank has made significant progress by signing a memorandum of understanding on digital asset collaboration with the Monetary Authority of Singapore (MAS) in 2025-26. According to RBI, bilateral discussions with MAS and the Central Bank of the UAE (CBUAE) were held for operationalising a cross-border CBDC pilot. The RBI is also participating in multilateral initiatives led by the Bank for International Settlements (BIS Innovation Hub), including Project Rialto and Phase 2 of Project Mandala that focus on improving cross-border payments using CBDCs. Instant money transfers between India and the UAE may be a reality soon, with the central banks of both countries working to link their sovereign digital currencies. This development is particularly significant since the UAE, home to more than four million Indians, is among the top sources of remittances to India. These collaborations represent significant steps toward improving cross-border payments through the use of CBDCs and establishing international standards for digital currency implementation.
In Gujarat, Puducherry and Chandigarh, beneficiaries under the public distribution system received food subsidies through programmable CBDC. As reported by RBI, these CBDC tokens could only be redeemed for eligible goods at fair price shops and designated merchants. The central bank developed the Unified Markets Interface (UMI), a multi-layer platform to facilitate tokenisation of financial assets while leveraging wholesale CBDC to enhance settlement efficiencies. According to Mint, during 2025-26, the RBI undertook several initiatives such as launching multiple CBDC pilots under direct benefit transfer (DBT) schemes of the central and state governments, leveraging the programmability of digital currencies. The RBI's focus on scaling up pilots and adding new participants demonstrates its commitment to expanding the reach of CBDC technology in government financial transfers.
Despite India's CBDC launch, e-Rupee circulation has declined to ₹771.66 crore as of March 31, 2026, from ₹1,016.46 crore a year earlier. However, more than eight million Indians currently use the e-Rupee, with 120 million transactions valued at ₹28,000 crore conducted by December 2025 since its 2022 launch, according to RBI data. The central bank's expanded pilot programmes represent a significant step toward mainstream adoption of digital currency in India's financial ecosystem, as India seeks to broaden the use of the digital rupee and explore its role in overseas payments. The RBI's commitment to scaling up pilots and adding new participants indicates its recognition that further efforts would focus on scaling up pilots, adding new participants and testing broader applications to address the current circulation challenges.
