The Reserve Bank of India (RBI) has taken a significant step in expanding the adoption of its Central Bank Digital Currency (CBDC) with the launch of a full-scale e-rupee wallet through fintech collaboration. MobiKwik, in partnership with Yes Bank, has become the first platform to offer interoperable e₹ transactions across peer-to-peer (P2P) and peer-to-merchant (P2M) payments.
The e₹ wallet supports both UPI payments and traditional digital currency transfers. This makes it compatible with existing UPI QR codes across India. This initiative is aimed at accelerating digital currency adoption and promoting a less cash-dependent economy.
Key Features of the E-Rupee Wallet
The e-Rupee (e₹), India’s Central Bank Digital Currency (CBDC), offers several key features designed to enhance the digital payment experience:
- Digital Representation of Physical Cash: e₹ serves as a digital counterpart to physical currency, maintaining the same denominations and value equivalence.
- Direct Transactions: Users can conduct transactions directly without intermediaries, similar to handing over physical cash, ensuring immediate settlement.
- Anonymity for Small Transactions: e₹ aims to provide a level of anonymity comparable to cash for small-value transactions. This ensures user privacy.
- Programmable Features: The RBI has expanded e₹’s programmable capabilities to include specific use cases such as fuel, groceries, education, dining out, healthcare, and travel. This allows for targeted and conditional payments.
These features collectively position e₹ as a secure, efficient, and versatile digital payment solution, aligning with India’s vision for a less cash-dependent economy.
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Strengthening Digital Currency Infrastructure
The RBI’s e-rupee pilot, launched in December 2022, was initially limited to banks. However, policy changes in April 2024 allowed fintech firms to participate, expanding access to digital currency services.
This rollout underscores India’s commitment to modernizing its digital payments ecosystem. The initiative aims to promote financial inclusion, improve cashless transaction efficiency, reduce operational costs, and enhance interoperability across payment infrastructure.
