What the CBDC Pilot Is All About
The Central Bank Digital Currency (CBDC), or India’s e-Rupee, is the Reserve Bank of India’s (RBI) official digital version of cash. Unlike wallet money or UPI transfers, the e-Rupee is directly issued by RBI and carries full sovereign backing.
As detailed in Rbi Cbdc Rollout Framework, the pilot started in late 2022 with select banks and cities. It aimed to test digital currency use for retail payments, merchant transactions, and government transfers — all while maintaining cash-like simplicity and offline capabilities.
Fast forward to 2025, and the e-Rupee pilot has expanded to millions of users across India. You can now make small retail payments, shop online, or even settle local bills — all using RBI’s digital currency.
Insight: The e-Rupee isn’t replacing UPI — it’s complementing it with cash-like trust and instant settlement.Where You Can Try the e-Rupee
RBI’s CBDC pilot is now live in more than 25 cities and through over a dozen major banks. According to E Rupee Participating Banks, the pilot includes key metros and Tier-2 hubs where digital adoption is high but cash usage remains significant.
Banks participating in the retail e-Rupee pilot include:
- State Bank of India (SBI)
- HDFC Bank
- ICICI Bank
- Axis Bank
- IDFC FIRST Bank
- Bank of Baroda
- Union Bank of India
- Yes Bank
- Canara Bank
- Kotak Mahindra Bank
Major pilot cities currently active:
- Mumbai, Delhi, Bengaluru, and Chennai
- Lucknow, Patna, and Chandigarh
- Ahmedabad, Indore, and Guwahati
- Bhubaneswar, Gangtok, and Shillong
- Surat, Pune, and Coimbatore
RBI has also partnered with NPCI Bharat BillPay and select fintech apps to test interoperability — allowing you to scan a QR code and pay either via UPI or e-Rupee, depending on your balance source.
Tip: If your bank supports the pilot, just open its app — you may already see an “e-Rupee wallet” tab waiting for activation.How the Digital Rupee Works in Daily Use
The e-Rupee functions like physical cash but in digital form — stored in a secure CBDC wallet provided by your bank. You can send or receive e-Rupee using a simple QR code, without needing bank transfers or intermediaries.
As explained in Digital Rupee Wallet Usage, every e-Rupee token is unique and issued directly by RBI, ensuring authenticity. Users can use it for:
- Retail shopping: Scan a QR at participating merchants to pay instantly.
- Peer transfers: Send money to friends or family like you’d hand over cash.
- Offline payments: Make small transactions even without an internet connection.
- Government services: Pay property tax, transport fees, or utility bills.
The e-Rupee wallet doesn’t earn interest, mirroring physical cash. It’s meant for small, everyday transactions where speed and privacy matter most. All transfers settle instantly, and there’s no need for payment gateways or settlement delays.
Insight: Think of the e-Rupee as your physical wallet — just without paper, coins, or risk of loss.What’s Next for CBDC in India
The next stage of RBI’s digital rupee project focuses on interoperability and scale. Under Future Of Cbdc India, upcoming updates will integrate e-Rupee into UPI apps and cross-border systems for international payments.
Here’s what to expect in 2025–26:
- Wider rollout: More banks and rural cooperatives to join the pilot by mid-2026.
- UPI-CBDC integration: Use e-Rupee directly within familiar UPI apps.
- Programmable money: Smart tokens for targeted government subsidies.
- Cross-border CBDC corridors: Partnerships with Singapore, UAE, and Japan for faster remittances.
RBI’s goal is to make the e-Rupee as familiar as UPI — combining the security of central banking with the ease of fintech innovation. As adoption expands, CBDC could reshape how India handles cash, credit, and global payments.
Tip: RBI’s CBDC isn’t the future — it’s already here. The only question now is how fast it scales.For early adopters and fintech enthusiasts, joining the e-Rupee pilot is a glimpse into India’s next digital revolution — one where money itself goes truly digital, without losing trust or accessibility.
Frequently Asked Questions
1. What is the CBDC pilot in India?
It’s RBI’s ongoing trial of the e-Rupee, a digital version of the Indian rupee designed to function like physical cash but in electronic form.
2. Where can I try the e-Rupee?
You can use it in 25+ pilot cities via participating banks such as SBI, HDFC, Axis, ICICI, and others offering CBDC wallets.
3. How do I get the e-Rupee wallet?
Check your bank’s mobile app for an “e-Rupee” or “CBDC Wallet” option — registration takes just a few taps.
4. Is the e-Rupee different from UPI?
Yes. UPI moves money between banks, while the e-Rupee is digital cash issued directly by RBI.
5. Will the CBDC expand to more cities?
Yes. RBI plans nationwide expansion by 2026, adding rural banks and fintechs to the ecosystem.