The Digital Rupee (e₹) is India’s central bank digital currency that brings the convenience of digital payments with the trust of RBI-issued money. It works like cash in electronic form and supports quick, secure and interoperable transactions. These FAQs offer a simple, updated overview of how e₹ functions in daily use.
A. Overview
1. What is the Digital Rupee (e₹)?
The Digital Rupee is India’s central bank digital currency, a digital version of the Indian Rupee issued and backed by the RBI. It works like cash in electronic form and is accepted as legal tender.
2. How is e₹ different from cash, bank deposits and UPI?
- Cash: e₹ is digital but carries the same value and backing from RBI.
- Bank deposits: Bank deposits are liabilities of commercial banks. e₹ is RBI-issued money held in CBDC wallets.
- UPI: UPI moves funds between bank accounts. e₹ itself is a digital currency and can be stored and spent directly.
3. Is e₹ legal tender?
Yes. e₹ is legally recognised and can be used for payments and settlements across India.
B. Getting Started
4. Who can use e₹ right now?
Retail customers and merchants included in pilot banks/non-banks can use e₹. Wholesale e₹ (e₹-W) is available only to financial institutions in separate pilots.
5. How can someone get an e₹ wallet?
Install a participating bank or non-bank CBDC app from the Play Store or App Store and complete the onboarding steps.
6. Is a bank account or KYC required?
Most retail wallets currently link to a savings account to simplify onboarding and use existing KYC. Requirements depend on the wallet provider.
C. Wallets, Balances & Daily Use
7. How is e₹ stored and accessed?
e₹ is stored in regulated CBDC wallets on Android or iOS devices. Features vary by issuing bank or non-bank.
8. Are there minimum or maximum wallet limits?
No minimum balance is needed. Any limits applicable in the pilot will be specified in the wallet app.
9. Can e₹ be used after banking hours?
Yes. Loading, redemption and transfers run round the clock.
10. Does e₹ support small-value and decimal payments?
Yes. Payments can be made up to two decimal places.
D. Transactions & Merchant Payments
11. How can merchants be paid using e₹?
Payments can be made using CBDC QR codes, and many wallets also support scanning UPI QR codes.
12. How to send or receive e₹ person-to-person?
Use the P2P option within the wallet to send funds through mobile number, QR or other supported identifiers.
13. What if exact denominations are not available?
A built-in “change” mechanism ensures the merchant receives the exact amount, and the balance is returned to the wallet.
14. Are transactions settled instantly?
CBDC-to-CBDC transactions settle instantly. Payments routed via UPI follow UPI settlement timelines.
E. Security, Privacy & Recovery
15. Are e₹ wallets secure?
Yes. Wallets use strong cyber-security controls, encrypted storage, device authentication and RBI-regulated safeguards.
16. What if the phone or SIM is lost?
Wallets can be recovered using the registered mobile number and the wallet provider’s recovery process. Contact customer support immediately.
17. Where to raise disputes or fraud complaints?
Use the app’s grievance section or contact the wallet provider’s customer care. Escalation routes follow provider and RBI guidelines.
F. Costs, Interest & Legal Aspects
18. Are there any charges for using e₹?
No charges apply in the pilot. Any future fees will be announced by wallet providers.
19. Will e₹ balances earn interest?
No. Retail e₹ is designed to function like digital cash and does not earn interest.
20. Does e₹ affect taxes or government benefits?
e₹ is simply a payment instrument. Existing tax laws and benefit rules continue to apply. Programmability may support targeted subsidy or DBT delivery in specific use cases.
G. Special Features & Technology
21. What is the offline feature and why is it useful?
Offline capability allows e₹ transactions even without internet connectivity. Different models are being tested for P2P and merchant payments.
22. What is programmability in e₹?
Programmability allows conditions on usage — such as merchant category, location, expiry, or purpose. Useful for DBT schemes, corporate allowances and conditional payments.
23. What privacy or traceability safeguards exist?
The design balances user privacy with regulatory needs like AML/CFT compliance. Details depend on technical and policy settings of the pilot.
24. Is e₹ interoperable between different wallets and UPI?
Yes. Wallets from different issuers interoperate for P2P and P2M. Many wallets also support scanning UPI QR codes.
H. Retail vs Wholesale CBDC (e₹-W)
25. What is e₹-W and how is it different from retail e₹?
e₹-W is used by financial institutions for interbank settlement and tokenised asset transactions. Retail e₹ is for everyday consumer and merchant payments.
26. What are the main use cases of e₹-W?
Government securities settlement, interbank lending, tokenised asset issuance and automated settlement workflows.
27. Who can join the wholesale pilot?
Only banks and regulated institutions selected by the RBI. Participation details are published through official notifications.
I. Pilot, Rollout & Updates
28. Which banks or apps currently offer e₹?
Availability changes as the pilot expands. The latest list is maintained on official RBI or pilot partner pages.
29. What do the pilots aim to test?
Technology, system scalability, security, offline use, programmability, settlement flows and policy frameworks.
30. How will users and merchants be informed about updates?
App notifications, customer communication from wallet providers, and official announcements from RBI will convey new features or rollout changes.
The Digital Rupee marks a major step in India’s shift toward secure, efficient and inclusive digital payments. As pilots expand, users can expect wider access, new features and smoother interoperability with existing payment systems. Staying updated with official RBI and wallet provider announcements will help users adopt e₹ confidently and safely.
Please refer RBI website for Official set of 26 FAQs