Unlocking the Future: Your Guide to Using India’s e-Rupee, the RBI’s Digital Currency

India’s financial landscape is evolving rapidly with the introduction of the e-Rupee, the Reserve Bank of India’s (RBI) official Central Bank Digital Currency (CBDC). Launched in December 2022 as a pilot, the e-Rupee has grown exponentially, reaching over 60 lakh users and 17 major banks by March 2025, with circulation topping ₹1,000 crore.

 

Key Highlights:

 

•⁠  ⁠What is e-Rupee?

e-Rupee is a sovereign digital currency, equivalent to physical cash but in a tokenized digital format. It is issued by the RBI and distributed via banks and non-bank entities.

 

•⁠  ⁠How to Use:

Users can download the e-Rupee wallet app from the App Store or Play Store, register with a participating bank, and start transacting. Payments can be made to merchants or individuals by scanning QR codes (including UPI QR codes) or using mobile numbers.

 

•⁠  ⁠No Bank Account Needed:

Unlike UPI or online banking, e-Rupee does not require a bank account. It is stored in a digital wallet and can be used for person-to-person or person-to-merchant transactions.

 

•⁠  ⁠Features and Limits:

e-Rupee is available in standard denominations (₹10, ₹100, ₹500, etc.). Wallets can hold up to ₹1 lakh at any time, with transaction limits for new users.

 

•⁠  ⁠Privacy and Anonymity:

Offers a reasonable degree of privacy in peer-to-peer payments, similar to physical cash.

 

•⁠  ⁠Programmability and Offline Use:

The RBI is piloting offline transactions and programmable use cases, such as direct benefit transfers and employee allowances.

 

Outlook:

With its rapid adoption and expanding features, the e-Rupee is set to transform India’s digital payments ecosystem, offering convenience, security, and new possibilities for financial inclusion and innovation.

 

Sources: RBI, Economic Times, Axis Bank