RBI Digital Rupee (e₹): A Complete Guide to India's CBDC — Retail, Programmable, Wholesale and CAT Sandbox
The Reserve Bank of India has released an updated set of Frequently Asked Questions on the Digital Rupee (e₹) as on October 1, 2026. These FAQs comprehensively address four key domains: Retail CBDC, Programmable CBDC, Wholesale CBDC, and the CBDC and Asset Tokenisation (CAT) Sandbox. This guide presents a structured breakdown of all key aspects covered in the updated RBI guidance.
A. Retail CBDC — Understanding the Digital Rupee for the General Public
What is the Digital Rupee (e₹)?
The Digital Rupee, officially referred to as e₹, is India's Central Bank Digital Currency (CBDC). It represents the digital equivalent of the physical Indian Rupee (₹) and is issued directly by the Reserve Bank of India. Functionally, e₹ is at par with physical currency — it carries the same sovereign guarantee, ensures settlement finality, and offers the same convenience associated with cash-based transactions.
Just as one holds physical notes in a wallet, e₹ is stored in a user's digital wallet and can be used for sending, receiving, or making payments — mirroring everyday cash usage in a fully digital form.
How is e₹ Held and Used?
e₹ can be held and transacted through e₹ wallets made available by banks and non-banks participating in the pilot programme. These wallets support both Person-to-Person (P2P) and Person-to-Merchant (P2M) transactions.
To begin using the e₹ wallet, users may:
- Download the e₹ application from the Google Play Store or Apple App Store
- Complete the registration process as guided within the app
- Load e₹ into the wallet from a linked bank account
- Use the wallet for payments by scanning either a CBDC QR code or a compatible UPI QR code at merchant locations
What is an e₹ Wallet?
An e₹ wallet is a digital wallet installed on a mobile phone or device that stores Digital Rupee, functioning similarly to how a physical wallet stores cash. These wallets are currently being offered by both banks and non-banks participating in the retail CBDC pilot.
Are e₹ Wallets Secure?
RBI has confirmed that e₹ wallets are built on a robust cybersecurity framework. Importantly, even if the mobile device on which the wallet is installed is lost or damaged, the e₹ stored within it remains safe. Users can recover their wallet by using the same phone number or SIM card on a new device.
Supported Mobile Platforms
e₹ wallet applications are currently supported on both Android and iOS mobile operating systems, ensuring broad accessibility for users across device types.
Creation and Issuance of e₹
The mechanism for creating and issuing retail e₹ closely parallels the process followed for physical currency:
- RBI creates and electronically issues e₹ to participating banks and non-banks
- These institutions then facilitate the onboarding of customers and the opening of e₹ wallets on their mobile devices
- Retail e₹ issuance, distribution, and usage has been live since December 2022
Purpose and Scope of the e₹ Pilots
The ongoing e₹ pilots are limited-scale, controlled rollouts designed to rigorously test:
- Technology architecture and scalability
- Application features and use-case viability
- End-to-end processes covering creation, distribution, and usage
- Public acceptance and merchant adoption
Eligibility to Use e₹
Currently, customers and merchants associated with identified pilot banks and non-banks across India are eligible to participate. Eligible users can download the respective e₹ app, complete registration, and begin transacting through the wallet.
Round-the-Clock Availability
Unlike conventional banking transactions that may be subject to banking hours, e₹ can be loaded, redeemed, or transferred between a bank account and the e₹ wallet 24 hours a day, 7 days a week, offering uninterrupted access.