Ahmet Bedirhan Arvas 
India, financial technologies and digital payments are undergoing a significant evolution, and the digital currency e-rupee from the Reserve Bank of India is gaining attention with its impressive performance in recent times. This digital currency, rapidly spreading with the active participation of banks, signals a groundbreaking change in the country’s payment infrastructure. This transformation has the potential to redefine India’s financial sector and provides clues about shaping the future role of digital payments.
India’s CBDC: Rapid Growth and Usage
India’s central bank digital currency (CBDC) has shown remarkable growth recently, particularly noteworthy for surpassing the limit of 1 million transactions in just one day on December 27, 2023. The factors contributing to this rapid growth and the elements influencing the widespread adoption were evaluated. This swift acceptance appears to be connected to not only technological infrastructure but also the supportive role of banks and financial institutions. The increasing popularity of digital payments represents a significant step in India’s financial sector’s digitization process.
The Role of Banks in the Use of E-Rupee
The significant contribution of banks played a crucial role in the rapid adoption of CBDC. Major banks such as HDFC Bank, Kotak Mahindra Bank, Axis Bank, Canara Bank, and IDFC First Bank popularized the use of this digital currency by depositing employees’ salaries into CBDC wallets. The role and impact of banks in transitioning to this new payment system were examined. Observing the focus on the role of banks in the widespread adoption and acceptance of digital currencies, it was noted that the digitalization accelerated the transformation of the financial sector. This illustrates the alignment and transformation of traditional banking principles with the digital world.
Goals and Future Plans of the Reserve Bank of India
The Reserve Bank of India had stated its goal in July to surpass a daily transaction limit of 1 million. However, there is no clear explanation for the realization of this goal and the reasons behind this significant increase. Uncertainties persist regarding the implications of surpassing this goal and how this groundbreaking period should be evaluated financially. The future plans and objectives of the Reserve Bank of India, as well as the sustainability of this rapid growth and its importance for financial stability, are significant considerations.
Increasing Daily Transaction Numbers in the Use of CBDC
Data released in July indicated that retail CBDC transactions ranged between 5,000 and 10,000 daily. However, the recent rapid increase revealed a dramatic surge in the daily transaction volume of this digital currency. The reasons behind this significant increase need to be detailed in terms of the adoption and acceptance of such a substantial increase. The rapid acceptance of digital currency in India could have a significant impact on shaping future payment infrastructure.
Impacts and Expectations of Digital Currency on Society
Understanding the impact of E-Rupi on society is crucial in terms of its acceptance and increasing use of this digital currency. The full effects of this period have not yet been determined, but there is an observed growing acceptance among people. How this digital currency will change financial habits among people and its societal impacts remain a subject of curiosity for the future trajectory of the Indian economy. At this point, the expected effects of E-Rupi and its long-term impact on society emerge as a topic worth examining.