India's government and RBI plan digital rupee expansion for welfare
India's government and the Reserve Bank of India (RBI) are working on expanding the digital rupee for welfare schemes like farmer support and pensions.
The idea is to make Direct Benefit Transfers (DBTs) smarter, using central bank digital currency (CBDC) technology so money goes directly to the right people, with less hassle and fewer middlemen.
Nationwide rollout isn't happening just yet, though; there are still legal and tech hurdles to clear.
RBI pilots CBDC for welfare payments
Pilot runs are already underway for food subsidies in places like Gujarat, Puducherry, and Chandigarh.
PM-KISAN, which gives farmers ₹6,000 a year, might be next in line for CBDC integration.
The RBI is also testing offline options, such as near-field communication (NFC) or SMS payments, to make the digital rupee more accessible.
Looking ahead, policymakers want to see if CBDC can beat the Unified Payments Interface (UPI) for everyday use, and they're eyeing cross-border payment upgrades with new models.