Summary of this article
RBI to expand digital rupee pilots across DBT schemes and retail
RBI explores cross-border CBDC pilots with global central banks
RBI tests tokenisation frameworks and expands CBDC participation
The Reserve Bank of India (RBI) plans to expand pilots of its central bank digital currency (CBDC), or digital rupee, into more direct benefit transfer (DBT) schemes and the domestic retail segment, while also operationalising cross-border CBDC pilots with select use cases, according to the RBI Annual Report 2025-26.
Tokenisation Of Financial Assets
The report has said that RBI also plans to explore additional pilots on tokenisation of financial assets, widen participant coverage, as well provide a framework for testing innovative products and services through the CBDC and Asset Tokenisation (CAT) sandbox during FY27.
During 2025-26, RBI launched multiple CBDC pilots under DBT schemes of the Centre and state governments, leveraging the programmability feature of CBDCs. The report has said that the feature allows payments to be designed for specific purposes and conditions.
Cross-Border Payment Plans
RBI has stepped up its efforts to test the use of CBDCs for international transactions. The report has said that the central bank signed a memorandum of understanding (MoU) on digital asset collaboration with the Monetary Authority of Singapore (MAS) during 2025-26.
The report added that bilateral discussions were held with MAS and the Central Bank of the UAE (CBUAE) to operationalise a cross-border CBDC pilot. RBI has also joined multilateral initiatives led by the Bank for International Settlements (BIS) Innovation Hub that focus on improving cross-border payments through CBDCs.
According to the report, one of RBI's agenda items for FY27 is to explore bilateral and multilateral cross-border CBDC pilots with select use cases while continuing its engagement in international projects related to technical and governance standards.
Testing New Use Cases
The report has said that RBI plans to expand CBDC pilots to cover new use cases under DBT schemes and in the domestic retail space. It also plans to continue exploring tokenisation of financial assets and broaden participation in the pilot ecosystem.
The report added that RBI will provide a framework for testing innovative products and services leveraging CBDC infrastructure under the CAT sandbox.
Meanwhile, the value of digital rupee banknotes in circulation, known as CBDC-R, stood at Rs 771.66 crore as on March 31, 2026, compared to Rs 1,016.46 crore a year earlier, a decline of about 24 per cent.
According to the report, RBI’s focus during FY27 will remain on expanding CBDC use cases, deepening domestic adoption, and advancing cross-border digital currency initiatives.
