RBI to Investigate Cross-Border CBDC Pilots for E-Rupee
The Reserve Bank of India (RBI) has reported a significant increase in the circulation of its central bank digital currency (CBDC), known as the e-rupee. By the end of March 2025, the e-rupee’s circulation reached Rs 1,016 crore, a substantial rise from Rs 234 crore the previous year. The RBI’s annual report, released on Thursday, also highlighted ongoing efforts to explore cross-border CBDC pilot projects, although specific timelines were not provided.
Growth of the e-Rupee
The e-rupee was first introduced in November 2022, starting with a wholesale pilot program followed by a retail pilot. The recent surge in its circulation indicates growing acceptance and usage among the public. As of March 2025, the total amount of e-rupee in circulation was Rs 1,016 crore. This includes Rs 857 crore in Rs 500 notes, Rs 91 crore in Rs 200 notes, and Rs 38 crore in Rs 100 notes. The RBI’s report suggests that the digital currency is becoming an integral part of the Indian economy, facilitating various transactions and enhancing the efficiency of payment systems.
The retail pilot of the e-rupee has expanded significantly, now involving 17 banks and approximately 60 lakh users. Initially focused on person-to-person (P2P) and person-to-merchant (P2M) transactions, the pilot has recently incorporated offline payment capabilities and programmability features. To further promote adoption, the RBI has allowed certain non-banking entities to offer CBDC wallets, broadening access to this digital currency.
Cross-Border CBDC Initiatives
The RBI is actively exploring cross-border CBDC pilot projects to address challenges related to efficiency and transparency in international payments. The report indicates that bilateral pilots with select countries are being developed, with significant progress made in establishing a roadmap and technical framework. The central bank is also considering participation in multilateral CBDC initiatives, particularly through collaborations with the Bank for International Settlements (BIS) Innovation Hub.
The potential for the e-rupee to simplify cross-border payments is a key focus for the RBI. As the global financial landscape evolves, the need for efficient and secure cross-border transactions becomes increasingly important. The RBI’s exploration of these initiatives reflects its commitment to enhancing the digital payment ecosystem and addressing the challenges posed by non-fiat virtual currencies.
Future Developments and Use Cases
Looking ahead, the RBI aims to expand the scope of both the e-rupee retail and wholesale pilots by introducing new features and use cases. The central bank plans to enhance the technological aspects of the account aggregator framework, which will improve transparency, customer convenience, and overall efficiency in transactions.
Programmability is a notable feature of the e-rupee, with various use cases already being implemented. For instance, direct benefit transfers to farmers based on carbon credit generation and loans to tenant farmers under the Kisan Credit Card (KCC) scheme are being explored. Additionally, banks are implementing programmable employee allowances for fuel and meals, showcasing the versatility of the e-rupee in different sectors.
The state of Odisha has already utilized e-rupee payments to benefit 88,000 individuals under the Subhadra Yojana. Ongoing discussions with multiple central government ministries and state governments aim to leverage the programmability of CBDC for targeted fund transfers, ensuring that resources are allocated effectively for defined purposes.
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