India’s push towards digital currency has achieved a pivotal milestone, with retail Central Bank Digital Currency (CBDC) transactions surpassing 120 million. The total transaction value has exceeded ₹28,000 crore, as reported by Reserve Bank of India (RBI) Deputy Governor T Rabi Sankar during the post-monetary policy press conference on December 5, 2025. This highlights the central bank’s commitment to innovating digital payment systems.
The retail CBDC, commonly referred to as the digital rupee (e₹), is RBI's flagship initiative aimed at providing a sovereign and efficient digital payment solution. The pilot program for retail CBDC commenced on December 1, 2022, with a limited user base and merchant network. The adoption rate has significantly increased since then, reflecting growing consumer and institutional confidence.
As of December 2025, the key statistics regarding retail CBDC include:
This remarkable growth can be attributed to targeted pilots, inclusion in government schemes, and the introduction of programmable features tailored for specific use cases.
A critical focus area, as noted by T Rabi Sankar, is the programmability of CBDCs. This feature allows for designing CBDCs that are restricted to specific uses or conditions. Potential applications of programmable CBDCs include:
For example, these features may allow funds to be earmarked solely for healthcare or education, or set to expire within a certain timeframe to encourage timely usage.
While domestic adoption is on the rise, the RBI is also exploring cross-border capabilities for the digital rupee. This functionality could facilitate quicker remittances, enhance currency interoperability, and enable real-time foreign transactions. Such advancements are particularly vital for India’s extensive diaspora and the import-export sector.
To promote broader adoption, the RBI has introduced a retail sandbox for CBDC, enabling fintech companies to create and test applications that incorporate the digital rupee. This sandbox environment allows startups and banks to:
These initiatives are aimed at establishing CBDC as a viable and competitive alternative to traditional payment methods such as UPI, cards, and mobile wallets.
Q1. What is Retail CBDC in India?
Answer: Retail CBDC, or the digital rupee, is India's central bank digital currency aimed at providing a secure and efficient digital payment solution to the public.
Q2. How many retail CBDC transactions have been made in India?
Answer: As of December 2025, retail CBDC transactions in India have exceeded 120 million, reflecting significant growth in digital payments.
Q3. What is the total value of retail CBDC transactions?
Answer: The total transaction value of retail CBDC in India has surpassed ₹28,000 crore, showcasing the increasing adoption of digital payments.
Q4. What are programmable CBDCs?
Answer: Programmable CBDCs can be designed for specific purposes or conditions, enabling targeted applications like subsidies and direct benefit transfers.
Q5. How is the RBI promoting fintech innovation for CBDC?
Answer: The RBI has launched a retail sandbox allowing fintech companies to develop and test applications integrating the digital rupee, fostering innovation in payment systems.
Question 1: What is the primary goal of the retail CBDC in India?
A) To replace cash completely
B) To provide a secure digital payment option
C) To eliminate all banking services
D) To increase physical currency usage
Correct Answer: B
Question 2: What was the cumulative transaction value of retail CBDC as of December 2025?
A) ₹10,000 crore
B) ₹20,000 crore
C) Over ₹28,000 crore
D) ₹50,000 crore
Correct Answer: C
Question 3: When did the pilot for retail CBDC begin?
A) January 2021
B) December 1, 2022
C) June 2023
D) January 2025
Correct Answer: B
Question 4: How many active users are currently using the digital rupee?
A) 5 million
B) 8 million
C) 10 million
D) 12 million
Correct Answer: B
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