The Reserve Bank of India (RBI) is advancing its digital rupee pilots. It is introducing new features such as programmability and offline payment capabilities.

These enhancements aim to make the digital rupee more practical for users in areas with limited internet access. They also enable customised payments, such as government subsidies and corporate spending controls.

Both retail and wholesale central bank digital currencies (CBDCs) are currently being tested with select banks, customers, and institutional dealers.

The retail CBDC pilot now includes 600,000 users across 17 banks, with participation expanded to certain non-bank entities offering CBDC wallets. The wholesale pilot has also broadened, adding four standalone primary dealers to diversify its use.

Meanwhile, India's digital payment ecosystem continues to grow rapidly, with a 34.8% rise in payment volumes and the Unified Payments Interface (UPI) dominating nearly half of global real-time payment transactions.

Amid these developments, India's Supreme Court has urged the government to introduce clearer cryptocurrency regulations. Justice Surya Kant expressed concerns over the risks posed by a 'parallel economy' linked to crypto assets.

Despite a 30% tax on crypto profits, over 100 million Indians hold digital assets, signalling strong public interest alongside growing regulatory scrutiny.

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