Digital Rupee (e₹): Features, Status and Differences
Why in the news
RBI’s digital cash drew attention with fresh usage numbers for 2025.
Key facts
- e₹ is a CBDC: digital cash held in a wallet, backed by RBI.
- Programmable for set uses such as subsidies; offline mode is planned.
- Scanning a UPI QR turns e₹ into ordinary money for the merchant.
- Usage: 6 million users, 17 banks; pilots include SBI, HDFC, ICICI, Axis, Yes Bank.
| Point | e₹ | UPI | Crypto |
|---|---|---|---|
| Nature | Digital cash substitute | Moves money between bank accounts | Decentralised, no central backing |
Other points
- Earns no interest; not fully anonymous (KYC needed).
- e₹-W: wholesale variant.
- Plans: cross-border payments, cheaper remittances, offline use.
Exam angle
- Issuer: RBI; interbank variant: e₹-W.
- Aim: modernise payments, cut cash reliance, widen inclusion.