INDIA'S DIGITAL RUPEE (e₹): ARCHITECTURE, ADOPTION, ECONOMIC IMPLICATIONS, POLICY CHALLENGES AND FUTURE PROSPECTS
- Authors
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Dr. Pragnesh B. Dalwadi
Government Arts and Commerce College, Barwala
Author
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Bhavesh A. Prabhakar
Author
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- Keywords:
- Digital Rupee (e₹), Central Bank Digital Currency, CBDC, UPI, Digital Payments, Financial Inclusion
- Abstract
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India’s Digital Rupee (e₹) is a Central Bank Digital Currency (CBDC) issued by the Reserve Bank of India (RBI). It is a digital form of money issued by the central bank. This study presents an India-specific analysis of e₹ with a focus on its architecture, adoption, economic effects, policy challenges and prospects. The research design is descriptive and analytical. It uses secondary evidence from publications of the Reserve Bank of India (RBI), the Bank for International Settlements (BIS) and peer-reviewed literature. The study mainly uses sources published during the period 2021–2026. The analysis distinguishes e₹ from UPI and commercial bank deposits and examines adoption, programmability, offline capability, wholesale settlement, financial inclusion, privacy, cybersecurity and bank disintermediation. The analysis indicates that the distinctive value of e₹ may depend less on the replication of established retail payment functions and more on specialised applications such as programmability, offline payments, institutional settlement and settlement in central bank money. The literature identifies perceived usefulness, trust, awareness, interoperability, perceived risk and user value as important factors that influence e₹ adoption. The study presents an integrated framework for CBDC architecture, adoption, use cases, economic outcomes, policy risks and technology risks. It also considers sustainable development. The study concludes that sustainable e₹ development requires interoperability, privacy protection, cybersecurity and financial stability. It also requires easy access, reliable system operation and evidence-based testing.
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- Author Biography
- References
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Copyright (c) 2026 Dr. Pragnesh B. Dalwadi, Bhavesh A. Prabhakar (Author)

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