New Delhi: The Reserve Bank of India (RBI) has unveiled plans to enhance the usage of its central bank digital currency (CBDC), known as the e-rupee, by introducing new features.
The RBI's latest proposal includes enabling digital rupee transactions even in offline scenarios, along with the introduction of programmability. These enhancements aim to provide retail users with innovative ways to utilize the e-rupee effectively.
These features will be rolled out gradually through pilot programs. The e-rupee, designed as a digital substitute for physical cash, leverages distributed ledger technology.
The introduction of programmability will empower government agencies to ensure payments are directed towards specified benefits, while also enabling companies to manage expenses such as employee business travel more efficiently.
Furthermore, the RBI is considering additional features such as a validity period and geographical restrictions for the e-rupee, as well as offline solutions tailored for remote and hilly regions with limited internet connectivity.
Earlier reports from Reuters indicated that the RBI was collaborating with banks to enhance the e-rupee's popularity by incorporating additional functionalities. In December, Indian banks facilitated the disbursement of certain employee benefits using the digital rupee, contributing to the RBI's objective of achieving one million daily transactions by the end of 2023.