RBI Plans Expansion of CBDC for Cross-Border Transactions

The Reserve Bank of India (RBI) plans to explore Central Bank Digital Currency (CBDC) for cross-border transactions, expanding its use in direct benefit transfer schemes and retail. Collaborations with Singapore and UAE central banks, and participation in multilateral projects aim to advance CBDC initiatives.

The Reserve Bank of India is set to explore the use of Central Bank Digital Currency (CBDC) in cross-border transactions. This move comes as part of a broader effort to integrate the digital rupee into more direct benefit transfer schemes and domestic retail sectors this fiscal year.

In its annual report, the RBI highlighted multiple CBDC pilots launched in 2025-26, focusing on direct benefit transfers, leveraging the programmable nature of CBDCs. Significant developments included a memorandum of understanding with Singapore's Monetary Authority for digital asset collaboration, and discussions with the Central Bank of the UAE for launching a cross-border CBDC pilot.

The RBI is also participating in multilateral initiatives led by the BIS-Innovation Hub to enhance cross-border payments through CBDCs. There are plans to broaden the scope of CBDC usage in domestic and international settings, including tokenising financial assets and expanding participant coverage.

Looking ahead to FY27, the RBI aims to operationalise bilateral CBDC pilots with selected use cases and further engage in multilateral projects. Additional plans include providing a framework for innovative products and services through a CBDC and asset tokenisation sandbox, decidedly shaping the future of digital payments.

The value of CBDC in digital form was recorded at Rs 771.66 crore as of March 31, 2026, down from Rs 1,016.46 crore the previous year.