e-INR (Digital Rupee)

The digital rupee is a tokenized, blockchain-based Indian Rupee issued by the Reserve Bank of India available in two models: wholesale e-INR for interbank transactions and securities settlements, and retail e-INR for consumers and merchants enabling digital payments integrated with India's UPI network.

Launched in 2022 and scaled through 2025, the e-INR supports both online and offline payments through NFC technology and QR codes, promotes cost-efficient transactions by reducing cash handling infrastructure, enables programmable finance through smart contract functionality, and extends financial inclusion to unbanked populations through feature phone compatibility and assisted onboarding. The RBI uses intermediated distribution model where commercial banks and payment service providers distribute e-INR to end users while maintaining customer relationships and AML/KYC compliance.

Strategic priorities include reducing cash dependency while maintaining user privacy through anonymity for small-value transactions, enabling instant cross-border remittances for India's large diaspora population, providing resilient payment alternative if private payment systems experience outages, supporting government benefit distribution through direct programmable transfers, and positioning India as CBDC innovation leader influencing global standards. The e-INR complements rather than competes with India's highly successful UPI real-time payment system, offering central bank money option alongside commercial bank payment rails. Implementation challenges include merchant acceptance infrastructure development, user education on digital wallets versus traditional banking, interoperability with existing payment systems, cybersecurity for distributed infrastructure, and managing potential deposit shifts from commercial banks to central bank.