RBI expands e-Rupee pilots to subsidies, launches tokenised deposit trial
Synopsis
The RBI is no longer just testing the e-Rupee — it is embedding it into the state's subsidy machinery and money markets. From programmable food subsidies in Gujarat and Puducherry to tokenised certificates of deposit settling in wholesale CBDC, the central bank is quietly stress-testing digital currency across the full financial stack. The catch: total circulation is still just ₹1,016 crore.
Key Takeaways
The RBI broadened e-Rupee (CBDC) pilots in FY26 to cover government subsidy programmes and financial-market instruments, per its FY26 annual report .
Programmable CBDC was used to deliver food subsidies under the public distribution system in Gujarat , Puducherry , and Chandigarh .
A pilot for tokenised certificates of deposit has launched on the new Unified Markets Interface (UMI) platform, with settlement via wholesale CBDC.
The RBI signed an MoU with the Monetary Authority of Singapore and is in talks with the Central Bank of the UAE for cross-border CBDC pilots.
The RBI joined Project Rialto and Project Mandala Phase 2 , both BIS Innovation Hub initiatives on cross-border CBDC payments.
Total e-Rupee circulation was just ₹1,016 crore as of March 2025 , with awareness and usability cited as key gaps.
The Reserve Bank of India (RBI) on Friday, 29 May 2026 announced a significant broadening of its central bank digital currency (CBDC) pilots, extending the e-Rupee into government subsidy disbursements and financial-market instruments, according to the central bank's annual report for FY26. The move marks the most operationally ambitious phase yet of India's digital currency rollout.
Programmable CBDC in Subsidy Delivery
In a notable deployment, the RBI used CBDC in FY26 under direct benefit transfer (DBT) schemes run by the Centre and state governments. In Gujarat, Puducherry, and Chandigarh, beneficiaries under the public distribution system (PDS) received food subsidies through programmable CBDC — digital currency coded to be redeemable only for eligible goods at fair price shops and designated merchants. The programmability feature is designed to reduce leakage and ensure end-use compliance, a persistent challenge in India's subsidy architecture.
Tokenised Certificates of Deposit via UMI
On the financial-markets side, the RBI launched a pilot for the issuance and trading of certificates of deposit in tokenised form through a new multi-layer platform called the Unified Markets Interface (UMI). Settlement on the platform takes place through wholesale CBDC. '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 stated. The pilot aims to harness tokenisation and distributed ledger technology (DLT) to improve speed and reduce counterparty risk in money-market transactions.
Cross-Border CBDC Collaborations
The RBI is also advancing its international digital currency agenda. The central bank signed a memorandum of understanding on digital asset collaboration and held discussions with the Monetary Authority of Singapore (MAS). Separately, deliberations with the Central Bank of the UAE are underway to operationalise a cross-border CBDC pilot. The RBI has also joined Project Rialto and the second phase of Project Mandala, both led by the Bank for International Settlements (BIS) Innovation Hub, which focus on improving cross-border payment flows using CBDCs.
The Scale Challenge: Circulation Remains Thin
Despite the expanding pilot scope, the e-Rupee's footprint remains limited. According to a recent report, total e-Rupee circulation stood at just ₹1,016 crore as of March 2025 — a fraction of India's broader monetary base. The report flagged that further efforts in awareness, usability, and strategic fintech partnerships are essential to drive meaningful adoption. This comes amid growing global competition in the CBDC space, with over 130 countries at various stages of digital currency development.
What Comes Next
The RBI has signalled plans to extend CBDC pilots to additional DBT schemes and business applications. The trajectory suggests a phased approach — stress-testing programmable features in welfare delivery before a potential wider retail rollout. How quickly the central bank can scale infrastructure and build public trust will determine whether the e-Rupee moves from pilot to mainstream.
Point of View
However, is where the real institutional leverage lies — if wholesale CBDC can compress settlement cycles in money markets, the efficiency gains are structural. Yet with circulation at ₹1,016 crore after years of pilots, the e-Rupee still lacks the network density to matter at scale. The cross-border MoUs with Singapore and the UAE are promising, but India has signed many fintech MoUs that did not translate into live infrastructure. The central bank needs a credible adoption roadmap, not just more pilot announcements.
NationPress
18 Jul 2026
Frequently Asked Questions
What is the RBI's e-Rupee CBDC pilot expansion about?
The RBI has extended its central bank digital currency pilots to include government subsidy delivery and financial-market instruments in FY26. This includes programmable CBDC for food subsidies and a new tokenised certificate of deposit trial on the Unified Markets Interface platform.
What is the Unified Markets Interface (UMI) launched by the RBI?
The UMI is a multi-layer platform developed by the RBI to facilitate tokenisation of financial assets using wholesale CBDC for settlement. A pilot for issuing and trading certificates of deposit in tokenised form has already begun on the platform.
How was programmable CBDC used in government subsidies?
In Gujarat, Puducherry, and Chandigarh, beneficiaries under the public distribution system received food subsidies as programmable CBDC — digital currency that could only be redeemed for eligible goods at fair price shops and designated merchants, reducing the risk of misuse.
What is the current scale of e-Rupee circulation in India?
As of March 2025, total e-Rupee circulation stood at ₹1,016 crore, which remains very small relative to India's broader monetary base. Experts have flagged awareness, usability, and fintech integration as critical gaps to address.
Which international CBDC projects has the RBI joined?
The RBI has signed an MoU with the Monetary Authority of Singapore, is in discussions with the Central Bank of the UAE for a cross-border CBDC pilot, and has joined Project Rialto and Project Mandala Phase 2 — both BIS Innovation Hub initiatives focused on cross-border CBDC payments.
