RBI Digital Rupee Pilot Expands to 5 More Cities: What You Should Know

🏦 RBI Digital Rupee Pilot Expands to 5 More Cities: What You Should Know

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📰 Introduction

On July 24, 2025, the Reserve Bank of India (RBI) announced the expansion of its Central Bank Digital Currency (CBDC) or Digital Rupee pilot program to five more cities. This move is seen as part of RBI's phased approach to test and roll out India’s digital currency nationwide.

Here’s what you need to know about this expansion and how it may impact the way you use money.

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🏙️ New Cities Added to the Digital Rupee Pilot

The five new cities added to the retail CBDC pilot include:

1. Jaipur
2. Indore
3. Bhubaneswar
4. Surat
5. Lucknow

These cities join the initial pilot locations such as Mumbai, New Delhi, Bengaluru, and Hyderabad.

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💡 What is the Digital Rupee (CBDC)?

• Digital Rupee is a blockchain-based virtual version of the Indian Rupee, issued and regulated by the RBI.
• Unlike cryptocurrency, it’s fully legal and backed by the central bank.
• It can be used for peer-to-peer (P2P) and merchant (P2M) payments via QR codes.

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💳 How Does It Work?

• Users download the CBDC wallet app from participating banks.
• Money is loaded from your bank account into the app in digital rupees.
• You can spend, send, or receive just like UPI — but without intermediaries.

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🏦 Participating Banks (July 2025)

The latest phase includes more banks like:

• HDFC Bank
• Axis Bank
• Bank of Baroda
• Kotak Mahindra Bank
• State Bank of India (SBI)

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🔍 Benefits of Digital Rupee

✅ Faster Transactions
✅ Reduced Cash Handling Cost
✅ Offline Payment Options (in future)
✅ Blockchain Security
✅ Greater Transparency

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📢 RBI's Statement

"The expansion of the digital rupee pilot is a key step in creating a scalable and secure digital payment ecosystem for India."
— RBI Deputy Governor T. Rabi Sankar

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📉 Is It Replacing UPI?

No. UPI will continue to exist. The digital rupee is an additional layer that provides an alternative to cash and card-based transactions — especially in areas where internet banking isn’t reliable.

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🧠 Final Thoughts

With this expansion, RBI is slowly building the future of Indian payments. As more users and merchants adopt the digital rupee, it could revolutionize the way we transact, bringing financial inclusion, transparency, and cost efficiency.

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