New Delhi | November 29, 2025:
The Reserve Bank of India (RBI) has stepped up its assessment of a full-fledged Central Bank Digital Currency (CBDC) mechanism after the October 2025 Monetary Policy Committee (MPC) meeting, amid a sharp rise in domestic cryptocurrency adoption and global financial uncertainty. The digital rupee pilot, now active across 10 major Indian cities, is being closely studied as policymakers look to enhance monetary stability while managing risks linked to decentralized crypto assets.
RBI Governor Sanjay Malhotra said the central bank is weighing the benefits of CBDC—such as improved financial inclusion and faster payments—against concerns over privacy, cybersecurity, and systemic risk. The e-rupee pilot currently includes 5 million test users and records transactions worth ₹1,000 crore every month, signaling strong early traction.
The MPC maintained the repo rate at 6.5%, keeping inflation projections around 4.5%, even as India’s crypto market swells to $50 billion in annual trades. Post-2024 regulatory clarity has pushed crypto usage up 30% year-on-year, particularly in remittances and digital commerce. However, SEBI has warned that $10 billion worth of trades in 2025 may be linked to wash-trading or price manipulation.
A full-scale rollout of the digital rupee could align with Prime Minister Narendra Modi’s G20-backed campaign for global digital financial standards. Integration of CBDC with UPI, experts argue, could bring an additional 200 million users into India’s digital payments ecosystem, which already processes transactions worth ₹200 lakh crore annually.
Fintech analyst Viral Shah predicts nationwide adoption by 2027, though challenges remain—particularly in bridging the rural digital divide, with 40% of India’s rural population still unbanked. Internationally, India is watching China’s e-CNY model for insights, even as the European Central Bank delays its own digital euro roadmap.
As global volatility reshapes financial systems, India’s push for a secure, sovereign digital currency reaffirms its ambitions in the race toward a $5 trillion digital economy.
