2025, Vol. 6, Issue 2, Part G
The rise of digital rupee (e₹): Evaluating RBI’s strategic approach to central bank digital currency (CBDC)
Author(s): Nanya Fatarpenkar
Abstract: The introduction of Central Bank Digital Currencies (CBDCs) indicates the shift in the ideology of the world monetary systems based on the necessity to ensure a secure, efficient, and inclusive model of payment infrastructure. The present paper focuses on the Digital Rupee (e₹), one of the responsibilities of the Reserve Bank of India (RBI). The discussion is about how it has been conceptualised and its implementation into the digital economy in India in terms of its preparation and the steps involved. The research will reference international examples of case studies, including the e-CNY, Digital Euro, and mCBDC Bridge, and put the e₹ in the context of comparative schemes to evaluate technological decisions, tradeoffs involving privacy, and the possible macroeconomic effects. Among the main findings, it is possible to note the opportunities, including advanced monetary policy transmission, improved financial inclusion, and enhanced cross-border payments, and key risks associated with cybersecurity vulnerabilities, privacy, readiness, and disintermediation of the banking sector. The policy recommendations focus on phased deployments, privacy-by-design architectures, universal interoperability and engagement in partnership with citizens and businesses. The paper reaches the conclusion that it is reasonable to have a balanced, iterative, and collaborative effort that can ensure India takes the lead in influencing the norms of CBDCs globally, yet protects financial stability at home.
Pages: 612-619 | Views: 1870 | Downloads: 1584
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How to cite this article:
Nanya Fatarpenkar. The rise of digital rupee (e₹): Evaluating RBI’s strategic approach to central bank digital currency (CBDC). Asian J Manage Commerce 2025;6(2):612-619.
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