# Digital rupee (e₹) by Reserve Bank of India

Canonical page: https://technooptimist.io/crypto/e-rupee
Frontier: [Crypto](https://technooptimist.io/crypto.md) · Field: Bank & central-bank money · Company: [Reserve Bank of India](https://technooptimist.io/companies/reserve-bank-of-india.md)
Stage: Pilot (3 of 5: Research → Proto → Pilot → Deploy → Scaling)
Updated: last update 2026-05-29, facts checked 2026-10-11
Goal: Give India a digital form of cash backed directly by the central bank, usable offline and programmable, so subsidies reach the right people and payments keep working where networks are weak.
Status: Pilot since 2022; ₹771.7 crore in circulation (Mar 2026, -24%); programmable subsidies and offline tests.
Next milestone: Bilateral cross-border CBDC pilots, target 2027

## Milestones

| Status | Milestone | Date | Slip |
| --- | --- | --- | --- |
| Done | Wholesale pilot for government bond settlement | 1 Nov 2022 |   |
| Done | Retail pilot starts in four cities | 1 Dec 2022 |   |
| Done | One million retail transactions in a day | 27 Dec 2023 |   |
| Done | Offline payments announced | 8 Feb 2024 |   |
| Done | Programmable uses expanded (fuel, food, travel…) | 30 Aug 2024 |   |
| Done | 17 banks and ~6M users in retail pilot | Mar 2025 |   |
| Done | Programmable food subsidies in three regions | 2026 |   |
| Planned | Bilateral cross-border CBDC pilots | 2027 |   |

## Upcoming events

- **2027**: Bilateral cross-border CBDC pilots

## Most important updates

- **29 May 2026**: Digital rupee in circulation falls 24% to ₹771.7 crore even as RBI expands programmable and cross-border pilots. The RBI's 2025-26 annual report shows e₹ in circulation at ₹771.7 crore on March 31, 2026, down from ₹1,016.5 crore a year earlier. ([our story](https://technooptimist.io/stories/digital-rupee-in-circulation-falls-24-to-771-7-crore-even-as-rbi-6d87b66d.md) · [original source](https://www.businessupturn.com/sectors/banking/digital-rupee-in-circulation-falls-24-to-rs-771-7-crore-even-as-rbi-expands-cbdc-pilots))
- **May 2025**: RBI annual report: e₹ circulation passes ₹1,016 crore with 17 banks and about 6 million retail users. The RBI's 2024-25 annual report showed digital-rupee circulation at about ₹1,016.5 crore, up from ₹16.4 crore in 2023. ([our story](https://technooptimist.io/stories/rbi-annual-report-e-circulation-passes-1-016-crore-with-17-banks-and-aee5afef.md) · [original source](https://www.medianama.com/2025/05/223-fintech-highlights-rbi-annual-report-2025/))

## Current obstacles

- **Falling usage**: Circulation dropped 24% in FY 2025-26, suggesting early incentives that drove pilot numbers are fading.
- **Competing with UPI**: Most Indians already pay instantly through UPI bank transfers, so e₹ needs distinct uses to win adoption.

## Physics limits

- **Offline cash needs trusted hardware**: Paying without a network means the device itself must stop double-spending, which relies on secure chips and caps on offline amounts.
- **Privacy versus oversight**: Digital central-bank money can record every payment; giving cash-like privacy while meeting anti-money-laundering rules is a design trade-off.

## How it works

### Issue: Central-bank money in digital form

The RBI creates e₹ as a direct liability, like a banknote; banks pass it to customers' e₹ wallets.

### Pay: Wallets and QR codes

Users pay people or shops from bank e₹ apps, many of which also scan UPI QR codes merchants already display.

### Program: Conditions attached to money

A government can send subsidies that can only be spent on eligible goods at approved shops, within set dates or areas.

### Offline: Tap-to-pay without signal

NFC-based offline modes let payments go through in hilly or rural areas and are being tested on feature phones.

## Spec sheet

| Spec | Digital rupee (e₹) | Provenance |
| --- | --- | --- |
| e₹ in circulation (31 Mar 2026) | ₹771.7 crore | reported |
| Retail pilot users (Mar 2025) | ~6 million | reported |
| Retail pilot banks (Mar 2025) | 17 | reported |
| Wholesale e₹ outstanding (Mar 2026) | Nil | reported |

Provenance: reported = stated by the company; estimated = our estimate; sample = a sample figure.

## About Reserve Bank of India

India's central bank. Since late 2022 it has piloted the digital rupee (e₹), a central-bank digital currency held in bank-issued wallets, now testing offline payments, programmable subsidies and cross-border use.

- e₹ in circulation fell 24% to ₹771.7 crore (Mar 2026) as the pilot shifted from volume to use cases.
- Food subsidies paid as programmable e₹ in Gujarat, Puducherry and Chandigarh (2025-26).
- Plans bilateral cross-border CBDC pilots in 2026-27, incl. talks with Singapore and the UAE.

- Headquarters: IN
- Status: government
- Website: https://www.rbi.org.in
- Partners, customers, investors: Monetary Authority of Singapore (partner); BIS Innovation Hub (partner)

Company page: https://technooptimist.io/companies/reserve-bank-of-india.md

## Related programs

Everything in Crypto: https://technooptimist.io/crypto.md

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