Indian Cryptocurrency by RBI? The Digital Rupee Explained
Has the RBI launched an Indian cryptocurrency? No. Here is what the Digital Rupee (e₹) is, how it works, how it differs from crypto and how to use it.
Many people search for the name of the Indian cryptocurrency launched by the RBI. The short answer: the Reserve Bank of India has not launched a cryptocurrency. What it has launched is the Digital Rupee, written e₹, India's central bank digital currency (CBDC). It is a digital form of the same rupee in your wallet, and it works very differently from Bitcoin or any other crypto. This guide explains what the e-rupee is, how to use it, and why it is not a crypto investment.
Key takeaways
- The RBI's digital currency is called the Digital Rupee or e-rupee (e₹). It is not a cryptocurrency.
- e₹ is legal tender, issued by the RBI, and always worth exactly one rupee. Its value does not rise or fall.
- Pilots began in November 2022 (wholesale) and December 2022 (retail).
- You hold e₹ in a bank-provided wallet app, not on a crypto exchange. It earns no interest and has no crypto tax.
What is the Digital Rupee (e₹)?
The Digital Rupee is a central bank digital currency: money issued directly by the RBI in digital form, just as it issues banknotes in paper form. In the Union Budget for 2022-23, the government announced that the RBI would introduce a digital rupee, and the Finance Act, 2022 amended the RBI Act to allow currency in digital form. The RBI published its concept note on CBDC in October 2022.
There are two versions:
- e₹-W (wholesale): for banks and financial institutions. Its pilot began on 1 November 2022, starting with settlement of secondary market trades in government securities.
- e₹-R (retail): for individuals and businesses. Its pilot began on 1 December 2022 in Mumbai, New Delhi, Bengaluru and Bhubaneswar, with State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank as the first participants. The pilot has since expanded to more banks and cities.
Digital Rupee vs cryptocurrency
| Digital Rupee (e₹) | Cryptocurrency (e.g. Bitcoin) | |
|---|---|---|
| Issued by | Reserve Bank of India | No central issuer; created by a network's rules |
| Legal tender | Yes | No |
| Value | Always ₹1 per e₹1 | Floats freely; can rise or fall sharply |
| Where you hold it | e₹ wallet app from a participating bank | Crypto exchange or self-custody wallet |
| Interest or returns | None | Price gains or losses |
| Tax | None as it is simply rupees | 30% on profits plus 1% TDS on sales |
| Regulated by | RBI | No investment regulator; exchanges register with FIU-IND |
In short, the Digital Rupee is a new form of the rupee, while cryptocurrency is a separate, volatile asset. You cannot buy e₹ on a crypto exchange, and you cannot profit from holding it.
How to use the e-rupee
- Download the e₹ wallet app of a bank taking part in the retail pilot. Check your bank's official website for availability.
- Register with your mobile number and link the wallet to your bank account.
- Load the wallet by converting money from your bank account into e₹. The wallet holds digital tokens in denominations, much like notes and coins.
- Pay people and merchants by scanning QR codes or sending to another wallet. Wallets have been made to work with UPI QR codes at many merchants.
- Convert unused e₹ back to your bank account whenever you like.
The RBI has also been testing features such as offline payments and programmability, where money can be restricted to specific uses, for example for government benefits.
Why the RBI built a digital rupee
- Lower cost of cash: printing, storing and moving physical currency is expensive.
- Faster settlement: the wholesale e₹ can settle transactions between institutions more quickly.
- A trusted digital option: a central-bank-backed alternative as payments go digital, with no credit risk from a private issuer.
- Cross-border potential: central banks around the world are testing CBDCs for international payments.
India is not alone. Many countries are building CBDCs; see our reports on Russia's digital ruble and the mBridge cross-border CBDC platform.
The RBI's view on cryptocurrency
The RBI has consistently expressed concerns about private cryptocurrencies, citing risks to financial stability, consumers and monetary policy. Its 2018 circular stopped banks from serving crypto businesses until the Supreme Court set it aside in March 2020. Today, crypto remains legal to hold and trade in India, is taxed as a virtual digital asset, and exchanges must register with FIU-IND, but the RBI does not treat crypto as money. Read what is legal with cryptocurrency in India and is cryptocurrency legal in India.
Beware of fake "RBI coins"
Because people look for an official Indian cryptocurrency, scammers sell tokens with names like "RBI coin", "Digital Rupee token" or "Bharat coin", often through Telegram, WhatsApp or referral schemes. The RBI does not sell any coin or token for investment, and the real e₹ is only available through participating banks' official wallet apps. Report suspected fraud at cybercrime.gov.in or on the 1930 helpline, and read how to avoid crypto scams in India.
Looking for cryptocurrencies built by Indian founders instead? See Indian cryptocurrency names and prices.
Frequently asked questions
What is the name of the Indian cryptocurrency by RBI?
The RBI has not issued a cryptocurrency. Its digital currency is the Digital Rupee, or e-rupee (e₹), a central bank digital currency that is legal tender and always worth one rupee.
Is the Digital Rupee a cryptocurrency?
No. The Digital Rupee is issued and backed by the RBI, has a fixed value of one rupee, and is legal tender. Cryptocurrencies have no central issuer and their prices float freely.
Can I invest in the Digital Rupee?
No. The e₹ does not earn interest and its value never changes, so there is nothing to gain from holding it beyond using it for payments.
How do I get the e-rupee?
Download the e₹ wallet app of a bank participating in the RBI's retail pilot, link it to your bank account and load it with rupees.
This article is AI-assisted, educational and general in nature. It is not financial advice and never a guarantee of profit. Every trade is at your own risk on your own exchange. See our risk disclosure and editorial policy.
