RBI expands e-rupee pilots, starts tokenised credit deposit trial
New Delhi, May 29
The Reserve Bank of India on Friday said that it has broadened its central bank digital currency pilots into government subsidy programmes and financial‑market instruments.
The central bank launched a pilot for tokenised certificates of deposit through a platform Unified Markets Interface (UMI), according to RBI's annual report for FY26.
The RBI said it had used CBDC in FY26 under direct benefit transfer schemes run by the Central and state governments.
In Gujarat, Puducherry and Chandigarh, beneficiaries under the public distribution system received food subsidies through programmable CBDC, which could only be redeemed for eligible goods at fair price shops and designated merchants, the statement noted.
"The Reserve Bank developed the Unified Markets Interface (UMI), a multi-layer platform to facilitate tokenisation of financial assets while leveraging wholesale CBDC to enhance settlement efficiencies," the annual report said.
The central bank said a pilot for the issuance and trading of certificates of deposit in tokenised form has begun on the platform, with settlement taking place through wholesale CBDC.
The pilot initiative aims to leverage emerging technologies such as tokenisation and distributed ledger technology in financial markets.
On cross‑border initiatives, the central bank said it signed a memorandum of understanding on digital asset collaboration and held discussions with the Monetary Authority of Singapore (MAS).
Further, deliberations were done with the Central Bank of the UAE to operationalise a cross‑border CBDC pilot.
The RBI joined Project Rialto and the second phase of Project Mandala, both led by the Bank for International Settlements Innovation Hub that focus on improving cross-border payments using CBDCs.
The central bank plans to expand CBDC pilots to additional direct benefit transfer schemes and business applications.
India has launched CBDC but the e-Rupee circulation is at a very small amount of Rs 1,016 crore till March 2025, and there is a need for further efforts in awareness, usability, and strategic partnerships with fintech applications are essential to boost their usage, a recent report said.
— IANS
Reader Comments
The programmable CBDC for PDS subsidies is a game-changer! No more leakage or diversion of food subsidies if it can only be spent on eligible goods at fair price shops. This could revolutionise how government benefits reach the poor. Hope they expand this to more states soon. Smart use of technology for good governance 👩💻📱
Interesting development from RBI. Tokenised CDs via the Unified Markets Interface could bring more liquidity and transparency to our debt markets. The cross-border collaborations with Singapore and UAE are also promising for NRIs like me. However, India needs to address the low adoption—only ₹1,016 crore in circulation after all this time? That's barely a blip. More fintech partnerships are essential.
The pilot in Puducherry and Chandigarh for PDS is a good proof-of-concept, but the real challenge is scaling. My only concern is digital literacy—many beneficiaries in rural areas struggle with smartphones and digital payments. RBI must ensure proper training and offline capabilities. Also, what about data privacy with programmable money? Important questions remain. 🤔
Tokenisation of financial assets plus wholesale CBDC settlement—this is forward-thinking. Joining Project Rialto and Mandala for cross-border payments could reduce costs and settlement times significantly. India's UPI already leads in digital payments, so CBDC feels like the logical next step. But we need to see more concrete use cases beyond pilots to justify the investment. Slow and steady, I suppose.
Honestly, I'm a bit sceptical. ₹1,016
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