Digital Rupee: A Cautious and Calibrated Rollout

In this paper, we discuss:

• India’s cautious, phased rollout of the digital rupee, balancing innovation with financial stability;
• Parallel retail (CBDC-R) and wholesale (CBDC-W) pilots designed to complement UPI and strengthen interbank settlement;
• A strong focus on cross-border interoperability, aligned with G20 and BIS initiatives to improve global payments;
• Financial inclusion gains via offline functionality and potential integration with welfare transfers;
• Structural risks around privacy, data governance, and possible bank disintermediation during stress episodes.

Download PDF: Digital Rupee – March 2026