Indian Economy News

Government to broaden e-rupee distribution beyond banks to boost retail use: RBI

  • IBEF
  • April 8, 2024

The Reserve Bank of India (RBI) aims to enhance the accessibility of the e-rupee for retail users by involving non-bank payment system operators, including third-party payment app providers like PhonePe, Google Pay, and Paytm. Initially limited to banks, the central bank digital currency (CBDC) will now be offered through CBDC wallets by third-party apps, broadening user options and testing the platform's resilience for multi-channel transactions, as outlined in the RBI's Statement on Developmental and Regulatory Policies.

To bolster transaction volumes for the retail CBDC, the RBI plans to enable third-party apps to offer CBDC wallets, pending approval. With 4.6 million retail users and 400,000 merchants presently using the e-rupee, efforts to increase transactions include integrating it with a Unified Payment Interface (UPI) and introducing programmability for targeted cash transfers. These measures have facilitated transaction growth, with banks disbursing employee benefits through the e-rupee in December, aiding the RBI in achieving its target of one million daily transactions by end-2023.

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