India’s central bank is preparing to broaden the use of its digital currency by expanding welfare payment programs and exploring international transaction capabilities, according to details shared in the Reserve Bank of India’s latest annual report for 2025-26.
During the past fiscal year, the RBI tested several pilot projects linked to government assistance programs in regions including Gujarat, Puducherry, and Chandigarh. These initiatives allowed selected beneficiaries to receive food subsidy payments through the digital rupee platform.
The report also noted that various government departments launched additional trials using the programmable features of the central bank digital currency (CBDC). The goal is to improve transparency and ensure public funds are used for their intended purposes.
India is currently running around ten pilot projects nationwide to evaluate whether the e-rupee can make welfare distribution faster and more efficient.
Data from the report showed that retail digital rupee circulation stood at 7.71 billion rupees by March 31, 2026, compared with 10.16 billion rupees recorded a year earlier.
On the international front, the RBI has entered into a digital assets cooperation agreement with Singapore’s monetary authority and is discussing cross-border payment pilot programs with both Singapore and the United Arab Emirates. The central bank is also participating in global CBDC initiatives coordinated by the Bank for International Settlements.