RBI releases updated FAQs on the Digital Rupee (e₹), clarifying wallet interoperability with UPI, programmability, and use cases in wholesale CBDC and retail pilots.
Digital Rupee (e₹): RBI Expands Clarity via Updated FAQs
The Reserve Bank of India has released revised FAQs on the Central Bank Digital Currency (CBDC) initiative, commonly known as the Digital Rupee (e₹), enhancing clarity on wallet architecture, UPI interoperability, and use cases. The updates confirm that e₹ wallets will be interoperable with UPI, enabling seamless retail payments through existing apps via tokenised integration.
The FAQs also outline programmable features of e₹, allowing conditional payments for subsidies, grants, and corporate expense management. In the wholesale segment, e₹-W is being piloted for inter-bank settlements and gilt fund transactions. The CAT (Compliance, Audit, and Transparency) sandbox allows regulated entities to test innovative applications under supervision.
Implications for Practitioners
Lawyers advising fintech, banking, and payments entities must factor in regulatory implications of programmable money, including data privacy under the DPDPA 2023 and anti-money laundering compliance. The UPI-e₹ integration may influence future payment architecture litigation and licensing debates under the Payment and Settlement Systems Act, 2007.
Citations
- RBI Digital Rupee FAQs, October 2026
