---
title: "Digital Rupee: India's Central Bank Digital Currency"
description: "The Digital Rupee (e₹) is India's central bank digital currency, issued by the RBI and backed by the government, ensuring legal tender status."
url: "https://modeldiplomat.com/learn/glossary/digital-rupee"
---

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Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- The Digital Rupee (e₹) is the Reserve Bank of India's central bank digital currency, a sovereign legal-tender liability of the RBI issued in digital form.
- What legal provision makes the Digital Rupee legal tender?
- How does the Digital Rupee differ from cryptocurrency?
- What are the two forms of CBDC in India?
- Why does the RBI favour a calibrated CBDC rollout?

[Civil Service & Diplomatic Exams](https://modeldiplomat.com/learn/civil-services/glossary)Updated June 22, 2026

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## Timeline

1. 1 November 2022

   The Wholesale CBDC (e₹-W) is restricted to financial institutions for interbank settlement, the settlement of secondary-market transactions in government sec…

2. 1 December 2022

   The Retail CBDC (e₹-R) is designed for the general public and businesses, functioning as digital cash held in wallets issued by participating banks; its pilo…

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Example

In December 2022 the Reserve Bank of India launched the retail Digital Rupee (e₹-R) pilot in Mumbai, New Delhi, Bengaluru and Bhubaneswar through banks including the State Bank of India and ICICI Bank.

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