Why CBDC Is Expanding to Businesses
The Reserve Bank of India (RBI) has taken the next big step in its Central Bank Digital Currency (CBDC) pilot — opening it up to small and medium businesses. Until recently, the digital rupee (e₹) was available only for select individuals and banks. But under Rbi Cbdc Retail Framework, merchants can now use CBDC wallets for everyday retail transactions.
The aim is to make digital cash work just like physical cash — instant, final, and traceable. For retailers, this means customers can pay directly using e₹ from their RBI-backed digital wallets, eliminating intermediaries like payment gateways or card networks. It’s an important milestone in India’s push toward a sovereign digital payment ecosystem.
According to RBI’s latest pilot data, over 2 lakh merchants across 30 cities have started accepting CBDC payments in partnership with major banks like SBI, HDFC, and IDFC First. The network is expected to scale nationwide in 2026.
Insight: CBDC isn’t replacing UPI — it’s offering merchants a new way to receive money directly from the central bank.How Shops Can Accept the Digital Rupee
Accepting the digital rupee is simpler than most merchants think. Under How To Accept E Rupee, RBI-authorized banks provide business users with CBDC merchant wallets that integrate directly into existing QR systems. This allows businesses to accept both UPI and e₹ payments from the same display code.
Here’s how to get started:
- Register with your bank: Merchants onboard via an RBI-partner bank’s CBDC pilot app.
- Set up merchant wallet: A verified CBDC wallet is created under the shop’s business PAN.
- Display the QR code: Merchants can use a dual QR that supports both UPI and CBDC.
- Receive instant payments: Customer scans and pays in e₹; funds settle instantly in your wallet.
- Withdraw or convert: Merchants can transfer CBDC to their linked bank accounts anytime.
CBDC transactions are processed directly on RBI’s distributed ledger, meaning faster settlement and zero payment gateway fees. Integration with existing billing systems is ongoing, allowing POS terminals and mobile apps to natively support e₹ acceptance soon.
Tip: Merchants already using UPI QR codes can accept CBDC payments with minimal setup — just link your digital wallet.Key Benefits for Merchants and MSMEs
CBDC payments come with multiple advantages over traditional digital methods. As highlighted in Cbdc Benefits For Merchants, RBI designed e₹ to give businesses greater control over settlement speed, cost, and compliance.
Here’s why shops are adopting it fast:
- Zero MDR: Unlike cards, CBDC transactions don’t attract merchant discount rates or payment fees.
- Instant settlement: Funds move directly from customer to merchant wallet in real time.
- Offline capability: e₹ can be transferred even without an active internet connection in pilot cities.
- Regulatory trust: Payments are backed by the RBI — no dependency on third-party networks.
- Audit-ready trails: Transparent and traceable records simplify GST reconciliation and compliance.
For MSMEs, this can mean tangible savings and fewer refund delays. Large retailers like Reliance Smart, Big Bazaar, and Spencer’s are also piloting e₹ acceptance for checkout lanes, with feedback showing reduced transaction friction.
Insight: The e₹ gives small shops big-bank speed — and direct RBI trust.What Challenges Businesses May Face
Like any new system, CBDC adoption comes with early challenges. Based on Digital Rupee Business Readiness, the biggest hurdles are merchant onboarding, user awareness, and technical integration.
Common challenges include:
- Limited device support: Some older phones and POS terminals may not yet support CBDC QR scanning.
- Low user familiarity: Many customers still don’t distinguish between e₹ and UPI payments.
- Conversion steps: Merchants may need to manually transfer CBDC to their bank until full auto-settlement launches.
- Tax reconciliation: Accounting software integration is still in pilot testing stages.
- Network scaling: Offline payments work only in select RBI-approved test zones.
RBI and NPCI are working with banks to iron out these gaps by 2026. The goal is a hybrid ecosystem where CBDC, UPI, and cards coexist seamlessly — giving businesses more choices, not confusion.
Tip: Start early with CBDC pilots — early adopters may get incentives and smoother onboarding.As India transitions toward digital cash, CBDC could redefine how money moves between people and businesses — instant, secure, and sovereign. For shop owners, it’s not about replacing old systems, but preparing for the next layer of India’s financial future.
Frequently Asked Questions
1. What is CBDC for businesses?
It’s RBI’s digital rupee (e₹) designed for merchants and enterprises to receive payments directly from customers in digital cash.
2. How is it different from UPI?
UPI transfers money between bank accounts; CBDC transfers actual digital currency issued by the RBI itself.
3. Do shops need new devices to accept CBDC?
No. Existing UPI QR codes can be upgraded to support e₹ acceptance through partner banks.
4. Are there any fees for merchants?
No. CBDC transactions are free for both customers and merchants under RBI’s zero-MDR policy.
5. When will CBDC go mainstream for retail?
Nationwide rollout is expected by 2026 once pilot integrations across banks and merchants are complete.