India’s payments revolution through digital has achieved a landmark with the launch of CBDC – Central Bank Digital Currency, referred to as the Digital Rupee or e₹. Triggered and overseen by the Reserve Bank of India (RBI), this is presently undergoing pilot testing in both retail and wholesale segments in India.
But what is e₹, why, and how, and why should financial institutions and businesses begin preparing now? This FAQ extensively addresses the most common queries about how Prodevans Technologies is executing the safe, scalable, and compliance-adherent implementation of the CBDC adoption that is
What is the Digital Rupee (e₹)?
The Digital Rupee (e₹) represents the Central Bank Digital Currency (CBDC) of RBI.
It is the digital equivalent of India’s legal tender and has the same value as a physical ₹. e₹ is created by RBI and exchanged digitally by secure mobile wallets.
How Does e₹ Work?
The official slogan of the Digital Rupee is: Cash but Digital.
The e₹ (Digital Rupee) operates much like physical currency, but in a secure digital format:
- It is stored in mobile-based digital wallets issued by banks and financial institutions participating in the RBI-led pilot program.
- Users can send, receive, and make payments, just like they would with cash.
- e₹ supports both peer-to-peer (P2P) and peer-to-merchant (P2M) transactions using e₹ QR codes or even UPI-compatible QR codes.
- The Reserve Bank of India (RBI) is the sole issuer of the Digital Rupee, providing it with a sovereign guarantee that ensures public trust and confidence, just like physical currency.
What is an e₹ Wallet?
An e₹ wallet is a mobile application on your smartphone that stores your Digital Rupee (e₹) and allows you to use it for transactions—just like a physical wallet. It is made available by leading banks such as SBI, ICICI, HDFC, Kotak Mahindra Bank, and others participating in the RBI’s digital currency pilot.
These wallets are compatible with both Android and iOS platforms and are designed to be secure, user-friendly, and easily accessible.
To ensure safety, strong privacy and security protocols are implemented—user data is encrypted, transactions are authenticated, and wallet access is protected by multi-factor authentication to safeguard against unauthorized use.
Key Features and Benefits of Retail e₹
- Legal Tender: Backed by the Reserve Bank of India and holds the same value as cash.
- Safe and Secure: Robust cybersecurity measures and data recovery mechanisms.
- Accessibility & Convenience:
No transaction fees – all transactions are completely free.
No minimum balance requirement – making it accessible to all segments of society. - Offline Functionality: Supports transactions without internet through NFC or telecom connectivity.
- Programmability: Enables specific-use transactions for government and corporate schemes.
- Denomination Support: Available in familiar currency values like ₹5, ₹10, ₹20, etc.
What is Wholesale CBDC (e₹-W)?
The Wholesale CBDC (e₹-W) is designed for use by financial institutions for large-scale and interbank transactions. Unlike the retail version used by the public, e₹-W streamlines interbank settlements, government security transactions, and call money markets through programmable smart contracts.
For example, when Bank A needs to transfer large sums to Bank B as part of a daily settlement, e₹-W can execute the transaction instantly and securely using programmable smart contracts—eliminating delays and reducing risk.
Who Can Use e₹?
Users and merchants registered with 15 pilot banks and institutions have access to the e₹ wallet in this instance. To be able to transact digitally, participants need to download the app for Android or iOS, register, and start.
Source
What Are the Differences Between e₹ and UPI?
UPI is a payments interface that makes it easier to move money between bank accounts, e₹ is a real digital money. e₹ money is held directly in the digital wallet and can be freely used outside of the banking system, which includes instantaneous wallet-to-wallet transactions.
Think of it like this:
UPI is like doing an online bank transfer. e₹ is like having real cash in your phone that you can give directly to someone.
What is the Programmability Feature?
One example of such a use could be e₹ money, which is a programmable money. Government subsidies, employee allowances, and interest subvention schemes are some cases in which this feature is ideal.
What About Offline Transactions?
In order to make sure that people are included digitally, e₹ also facilitates offline transactions through various methods such as NFC or telecom-based technologies which can be used in places with low connectivity like remote villages or in case of network failure.
No Fees, No Minimums, Full Accessibility
Using e₹ is free of cost. There are no charges, no minimum balance requirements, and no interest is paid on wallet balances, as e₹ mimics the behavior of physical cash. Just like physical cash, you don’t earn any interest on the amount stored in your e₹ wallet. It’s designed to mimic the behavior of actual currency notes, making it simple, accessible, and inclusive for all.
Why Choose Prodevans Technologies?
As the Indian financial ecosystem gears up for a digital currency future, Prodevans Technologies emerges as a trusted CBDC technology implementation partner. With deep domain expertise and proven digital infrastructure capabilities, Prodevans helps financial institutions, fintechs, and government agencies adopt and scale CBDC usage with confidence.
Now is the time to act—India’s digital currency landscape is evolving rapidly, and early adoption means staying ahead of the curve.
What We Offer:
1. Full-Stack Wallet Solutions
Secure, user-friendly e₹ wallets tailored for banks, businesses, and government institutions.
2. Programmable Transaction Engines
Smart contract-based automation for subsidies, allowances, and conditional disbursements.
3. Regulatory-Ready Compliance
End-to-end KYC/AML, audit logs, data encryption, and alignment with RBI mandates.
4. Offline & Interoperable Systems
NFC-enabled apps, UPI-CBDC QR scanning compatibility, and fallback recovery solutions.
5. Scalable Deployment Models
From pilot rollouts to enterprise-grade deployments across states and sectors. With 24/7 support and a commitment to continuous improvement, Prodevans delivers not just implementation—but long-term partnership.
Your Roadmap to CBDC Adoption with Prodevans
| Step | Action | Outcome |
| Consult | Contact Prodevans for a CBDC readiness consultation | Get expert advice and scope your pilot |
| Choose | Choose your deployment model (retail/wholesale) | Tailored CBDC solutions for your sector |
| Deploy | Launch secure e₹ wallets and programmable features | Ensure user adoption and compliance |
| Optimise | Monitor, scale, and optimize | Analyze performance, grow securely |
Final Thoughts
The Digital Rupee goes beyond a technological breakthrough because it is the very basis of new transaction methods in India for the coming years. By leveraging speed, security, transparency, and inclusion, e₹ is set to revolutionize the way we view finance.
Now is the time if you are a bank, an enterprise, or a public institution that wishes to be part of this future.
Join hands with Prodevans Technologies to develop a robust, scalable, and compliant CBDC infrastructure that will give you a leading position in the digital currency market.
Early adopters gain a crucial first-mover advantage—setting industry benchmarks, building trust faster, and unlocking long-term competitive edge.
To schedule a free consultation, visit www.prodevans.com
Resources
- RBI Official e₹ FAQs
- Digital Rupee on Wikipedia
- RBI Press Releases on CBDC Pilots
- https://www.mdpi.com/2674-1032/1/4/345?utm_source
- https://www.linkedin.com/pulse/project-sand-dollar-bahamas-case-study-richard-ng-cputc?utm_source
- https://www.wired.com/story/chinas-digital-yuan-ecny-works-just-like-cash-surveillance/?utm_source
