Digital Rupee (e₹) 2026 — RBI Expands CBDC to 50+ Banks, Wallet Launch & Programmability
RBI's Digital Rupee (e₹) in 2026: 50+ banks now offer CBDC wallets, programmability features for subsidies, retail user base crosses 1.5 crore, and roadmap to wholesale CBDC inter-bank settlement.
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Summary. The Reserve Bank of India has expanded the Digital Rupee (e₹) retail pilot to 50+ banks as of April 2026, with 1.5 crore+ users holding CBDC wallets. The 2026 roadmap focuses on programmability — letting government departments issue earmarked CBDC for specific welfare uses (e.g., agricultural subsidy that can only be spent on certified seeds / fertilisers). Wholesale CBDC for inter-bank settlement is now operational across the call-money market. The RBI maintains that the e₹ is a complement to UPI, not a replacement — UPI moves money between bank accounts, while CBDC is a direct claim on the central bank, identical to a banknote.
The Reserve Bank of India launched the retail Digital Rupee pilot on 1 December 2022 with 4 banks in 4 cities. Three years on, the pilot has scaled significantly:
| Metric | Dec 2022 | April 2026 |
|---|---|---|
| Participating banks | 4 | 50+ |
| Cities covered | 4 | All Tier-1 + Tier-2 cities |
| Registered users (retail) | 0.5 lakh | 1.5 crore+ |
| Daily transactions | < 5,000 | 8 lakh+ |
| Wholesale settlement | NA | Operational across CBLO + call money |
What is the Digital Rupee?
The e₹ is a Central Bank Digital Currency (CBDC) — legal tender issued in digital form by the RBI. Unlike a UPI transaction (which moves a deposit between two bank accounts), an e₹ payment transfers a token that is itself a direct claim on the RBI, identical in legal status to a physical ₹500 note. The token is held in a CBDC wallet on your bank’s app.
How is it different from UPI?
| Aspect | UPI | Digital Rupee (e₹) |
|---|---|---|
| What moves | Bank deposit (a claim on the bank) | Token (a claim on RBI) |
| Bank in the loop | Required for both sender and receiver | Used as wallet provider; transfer happens token-to-token |
| Settlement | T+1 batch settlement to NPCI | Instant, peer-to-peer |
| Offline | No (needs internet) | Pilot offline mode in 2025–26 |
| Programmability | Limited | Strong — money can be earmarked for specific uses |
| Privacy | Transaction visible to bank + NPCI | More similar to cash for small values |
| Interest | Bank pays SB interest on deposit | No interest (like a banknote) |
Why programmability matters in 2026
The biggest practical win in 2025–26 is programmable CBDC for welfare disbursal. The RBI piloted this with:
- Agricultural subsidy in Maharashtra — farmers received e₹ that could be spent only at certified fertiliser / seed retailers, not on consumption. Reduced leakages in the subsidy chain.
- Education scholarships in Karnataka — e₹ disbursed to students valid only for tuition fees and certified educational expenses.
- PM Vishwakarma toolkit voucher — the ₹15,000 voucher is being piloted as programmable e₹ that can only be redeemed on GeM for specific tools.
Programmability lets the issuer enforce conditions (where, when, on what) at the token level — without intermediating through complex DBT verification.
Wholesale CBDC
Since October 2024, the wholesale CBDC (e₹-W) has been used in:
- Call money market — banks settle inter-bank loans intra-day
- Government securities (G-Sec) settlement — DvP (Delivery vs Payment) on the same rail
- Cross-border trial with Sri Lanka, UAE, Nepal — pilot for bilateral payment without SWIFT
Wholesale CBDC is invisible to retail users but reduces the time and counterparty risk in inter-bank money movement.
How to use the retail e₹
- Download the e₹ wallet from your bank’s banking app — supported banks include SBI, ICICI, HDFC, Yes Bank, Kotak, Axis, IDFC First, Union Bank, Bank of Baroda, Federal Bank, IndusInd, and 40+ more.
- KYC is auto-fetched from your existing bank account; one-time confirmation in the wallet.
- Load e₹ from your savings account — converts ₹ deposit into e₹ tokens at par.
- Pay by scanning a QR code or sending to a mobile number / e₹ wallet.
- Withdraw back to your savings account anytime — converts tokens back at par.
Volume comparison — UPI vs e₹
Despite rapid growth, e₹ remains a tiny fraction of UPI:
| Metric (April 2026) | UPI | Digital Rupee (e₹) |
|---|---|---|
| Daily transactions | 65 crore | 8 lakh |
| Daily value | ₹85,000 crore | ₹2,200 crore |
| Active users | 50 crore | 1.5 crore |
UPI’s ubiquity means most retail flows continue there. The e₹ is finding niches — programmable subsidies, instant cross-border in pilots, settlement in wholesale.
What’s coming in FY 2026–27
| Quarter | Expected milestone |
|---|---|
| Q1 FY 2026–27 | Offline e₹ payments rolled out nationwide (currently in 50-district pilot) |
| Q2 | Cross-border programmable e₹ for remittances — UAE / Singapore corridor |
| Q3 | All 12 PSBs + 30 private banks complete wholesale e₹ integration |
| Q4 | Smart-contract layer for e₹ — automated trade-finance + escrow flows |
The RBI has signalled that the pilot will continue to expand on a use-case basis rather than a “big-bang” full rollout — explicitly avoiding any disruption to bank deposits or UPI volumes.
Frequently asked questions
1. Is the Digital Rupee replacing cash?
2. How is e₹ different from UPI?
3. Does e₹ earn interest?
4. Which banks offer e₹ wallets?
5. Can I use e₹ offline?
6. What is programmable CBDC?
7. Is e₹ legal tender?
8. What is the privacy model for e₹?
Official links
Disclaimer. SarkariBaba is an independent information publisher. CBDC features and bank participation are evolving rapidly — verify on rbi.org.in for the current state of the pilot.
