India’s financial ecosystem is undergoing a paradigm shift with the introduction of Central Bank Digital Currency (CBDC)—the e₹ (digital rupee)—by the Reserve Bank of India (RBI). While initially restricted to banks, the RBI has now permitted non-bank fintech firms to facilitate digital rupee transactions, marking a significant step toward a cashless economy.
The launch of e₹ wallets by fintech leaders CRED and MobiKwik, in partnership with Yes Bank, signifies a major milestone in India's CBDC journey. As the first non-banking platforms to offer e₹ transactions, these firms are poised to reshape India’s digital payments landscape, offering seamless and secure digital currency transactions to millions of users.
This article provides an in-depth examination of India's CBDC evolution, the strategic role of fintechs, regulatory challenges, and the long-term implications for the country’s financial infrastructure.
The Evolution of Digital Currency: A Global Context
The concept of CBDC has gained traction globally as central banks explore digital alternatives to physical cash. Several major economies have already launched or piloted their state-backed digital currencies, seeking to modernize their financial systems and enhance transaction security.
Global CBDC Developments
Country | CBDC Name | Status | Key Features |
China | Digital Yuan (e-CNY) | Pilot Phase (launched 2020) | State-controlled, used for retail payments |
European Union | Digital Euro | Development Stage (2026 rollout expected) | Cross-border payments, privacy-focused |
United States | Digital Dollar | Research Phase | Potential retail and wholesale applications |
Nigeria | eNaira | Launched (2021) | Used for government payments and financial inclusion |
India | e₹ (Digital Rupee) | Pilot Phase (launched 2022) | Retail & wholesale transactions, RBI-backed |
With over 80% of global central banks exploring digital currencies, India’s CBDC rollout aligns with global trends, ensuring the nation remains at the forefront of financial innovation.
India’s CBDC Journey: From Concept to Implementation
India’s CBDC initiative began with the RBI’s announcement in December 2022, when it launched the wholesale and retail digital rupee pilots. Initially limited to 15 banks, the scope of participation expanded in April 2024 to include fintech companies.
Why did India introduce the e₹?
Enhance financial inclusion: Enable digital transactions in regions with low banking penetration.
Reduce reliance on cash: Minimize the cost and inefficiencies associated with physical currency.
Improve transaction security: Offer an RBI-backed, fraud-resistant digital payment system.
Facilitate cross-border transactions: Simplify international trade and remittances.
Enhance monetary policy efficiency: Provide better tracking of financial transactions and economic indicators.
Current CBDC Adoption in India
CBDC Segment | Participants | Primary Use |
Retail CBDC | 15 banks, CRED, MobiKwik, Yes Bank | Digital payments for individuals and businesses |
Wholesale CBDC | 14 banks & financial institutions | Interbank settlements, securities trading |
Fintech's Role in e₹ Adoption: A Turning Point
Historically, digital payments in India were dominated by banks and payment gateways. However, fintech companies have significantly transformed the payment ecosystem, accelerating the shift toward a cashless economy.
Why Did the RBI Allow Fintechs to Offer e₹ Wallets?
Expanding accessibility: Fintech apps reach millions of users who prefer digital wallets over bank apps.
Encouraging innovation: Fintech firms drive faster adoption through user-friendly interfaces and rewards-based incentives.
Boosting transaction volumes: The success of UPI proves that non-bank players can significantly enhance digital payment adoption.
With CRED and MobiKwik leading the way, other fintech giants like Google Pay, PhonePe, and Amazon Pay are also vying to integrate CBDC into their platforms.
CRED vs. MobiKwik: How Their e₹ Wallets Compare
Both CRED and MobiKwik launched their e₹ wallets in January 2025, becoming the first non-banks to participate in India’s CBDC ecosystem.
Comparison of CRED & MobiKwik’s e₹ Wallets
Feature | CRED | MobiKwik |
Availability | Beta phase (limited access) | Available to all Android users |
Transaction Limit | ₹10,000 per transaction, ₹50,000 daily | ₹10,000 per transaction, ₹50,000 daily |
KYC Requirements | Video KYC required | Instant access for existing KYC users |
Key Features | CRED Pay integration, cashback offers | UPI-linked payments, broad merchant acceptance |
What Industry Leaders Say
Kunal Shah, Founder of CRED, emphasized the significance of CBDC integration:
“With the support of RBI, we’re enabling the creditworthy to participate in shaping the future of digital currency.”
Meanwhile, MobiKwik’s MD, Bipin Preet Singh, stated:
“Our goal is to drive mass adoption of e₹ and help India transition to a less-cash economy.”
Future of e₹: Opportunities & Challenges
While CBDC adoption in India has been gradual, fintech involvement is expected to accelerate its mass-market acceptance.
Key Opportunities
Opportunity | Impact |
Cross-border payments | Simplifies remittances & trade settlements |
Financial inclusion | Empowers unbanked populations |
Offline transactions | Expands digital payments to remote areas |
Programmable payments | Enables automation in government & corporate transactions |
Challenges Facing e₹ Adoption
Challenge | Proposed Solution |
Limited public awareness | Nationwide digital literacy campaigns |
Merchant reluctance | Incentives for CBDC transactions |
Cybersecurity risks | Stronger encryption & fraud detection |
Regulatory complexities | Clearer RBI guidelines for fintechs |
Conclusion: The Road Ahead for India’s Digital Rupee
India's CBDC expansion represents a transformative shift in financial technology, enhancing security, efficiency, and inclusion. The introduction of CRED and MobiKwik’s e₹ wallets is a significant milestone in India’s digital finance evolution, paving the way for wider fintech adoption.
As fintech firms like Google Pay, PhonePe, and Amazon Pay join the ecosystem, the e₹ will likely become a mainstream payment method, complementing UPI and cash transactions.
The coming years will determine whether the digital rupee can achieve mass adoption, but with fintech innovations and strong RBI backing, India is poised to lead the world in CBDC implementation.
For expert insights on emerging fintech trends, digital currencies, and AI-driven financial solutions, follow Dr. Shahid Masood and the 1950.ai team.
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