The RBI has revised its Digital Rupee FAQs, clarifying e₹ wallet functionality, UPI interoperability, programmability, and wholesale CBDC sandbox (CAT) use cases.
RBI Clarifies Digital Rupee (e₹) Framework
The Reserve Bank of India has updated its Frequently Asked Questions (FAQs) on the Central Bank Digital Currency (CBDC), commonly known as the digital rupee (e₹). The revision addresses technical and operational aspects of retail and wholesale CBDC pilots.
Key updates include interoperability between e₹ wallets and UPI platforms, enabling seamless retail payments. The RBI also outlines programmability features—such as time- and use-conditioned transfers—for corporate and government disbursements. The CAT (Central Bank Digital Currency Application Track) Sandbox now allows banks and fintechs to test innovative use cases in trade finance and cross-border settlements.
Legal practitioners should assess implications for payment contracts, data privacy, and financial regulation. While e₹ is not legal tender, its use is encouraged in specific wholesale markets. The FAQs, though not binding, provide essential guidance for entities participating in CBDC pilots.
