India is piloting the e rupee digital currency to deliver welfare payments more efficiently and with less corruption. Trials are already funding farmers directly for equipment, while similar experiments target food distribution. Backed by “programmable” features, the e rupee is designed to restrict how money can be used, aiming to ensure subsidies reach their intended purpose.
India is accelerating adoption of the e-rupee by routing parts of its $80 billion welfare system through 10 pilot programs, including programmable subsidies spendable only at approved vendors. While usage remains far below UPI, India is also urging BRICS CBDC linkage ahead of the 2026 summit, aiming for interoperability and reduced reliance on the US dollar—amid geopolitical and trade risks.
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RBI’s retail CBDC, the e rupee, began as a pilot in 2022 and signaled a major shift in India’s digital payments journey. The trial is aimed at shaping how a government backed digital currency could work for everyday transactions, from payment convenience to settlement and usability, before any wider rollout decisions are made.
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