The Reserve Bank of India introduced the Central Bank Digital Currency in 2022 as a digital version of cash. Called the digital rupee, it is issued directly by the central bank and has been tested through several retail pilots since launch. The rollout comes at a time when digital payments in India continue to rise. Official data shows digital transactions reached 18120.82 crore rupees in value during 2024 to 2025.
People can already use the digital rupee for person to person or person to merchant payments. Many vendors participated in the pilot phases, but usage remains limited for now. Anyone who wants to try the digital rupee can download a wallet app from a participating bank, register and transact with others who also use it.
To start using the digital rupee, users must download a wallet app from one of the listed banks, register, accept the terms, set a PIN and load money from their bank account. Payments can be made by entering a phone number or scanning a QR code. Receiving money works the same way. Only users who have enabled the digital rupee can exchange funds with one another.
Some apps require phone number verification through an SMS instead of an OTP. After verification, users set up a PIN and enable face authentication. Money can be added from the linked bank account or through various payment apps, and the interface shows note like images while loading funds. Transactions work very much like common mobile payment apps and are simple to complete.
Several banks are part of the digital rupee pilot. These include SBI, ICICI Bank, IDFC First Bank, Yes Bank, HDFC Bank, Union Bank of India, Bank of Baroda, Kotak Mahindra Bank, Canara Bank, Axis Bank, IndusInd Bank, PNB, Federal Bank, Karnataka Bank and Indian Bank.
The digital rupee is fully safe because it is a sovereign currency backed by the central bank. It can be converted to cash or commercial bank money and is protected from physical damage. It is not similar to cryptocurrencies and does not rely on market movements. There are no charges for using the digital rupee. Transactions are free, there is no minimum balance requirement and merchants can accept digital rupee payments at no cost.
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