RBI expands CBDC pilots into subsidy schemes and tokenised financial markets

The Reserve Bank of India has expanded its central bank digital currency pilots into subsidy programmes and financial markets, including tokenised certificates of deposit and cross-border projects. CBDC was also used in select welfare schemes under direct benefit transfer mechanisms.

New Delhi: The Reserve Bank of India (RBI) on Friday said that it has broadened its central bank digital currency (CBDC) pilots into government subsidy programmes and financial‑market instruments.

The central bank launched a pilot for tokenised certificates of deposit through a platform Unified Markets Interface (UMI), according to RBI’s annual report for FY26.

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The RBI said it had used CBDC in FY26 under direct benefit transfer schemes run by the Central and state governments.

In Gujarat, Puducherry and Chandigarh, beneficiaries under the public distribution system received food subsidies through programmable CBDC, which could only be redeemed for eligible goods at fair price shops and designated merchants, the statement noted.

“The Reserve Bank developed the Unified Markets Interface (UMI), a multi-layer platform to facilitate tokenisation of financial assets while leveraging wholesale CBDC to enhance settlement efficiencies,” the annual report said.

The central bank said a pilot for the issuance and trading of certificates of deposit in tokenised form has begun on the platform, with settlement taking place through wholesale CBDC.

The pilot initiative aims to leverage emerging technologies such as tokenisation and distributed ledger technology in financial markets.

On cross‑border initiatives, the central bank said it signed a memorandum of understanding on digital asset collaboration and held discussions with the Monetary Authority of Singapore (MAS).

Further, deliberations were done with the Central Bank of the UAE to operationalise a cross‑border CBDC pilot.

The RBI joined Project Rialto and the second phase of Project Mandala, both led by the Bank for International Settlements Innovation Hub that focus on improving cross-border payments using CBDCs.

The central bank plans to expand CBDC pilots to additional direct benefit transfer schemes and business applications.

India has launched CBDC but the e-Rupee circulation is at a very small amount of Rs 1,016 crore till March 2025, and there is a need for further efforts in awareness, usability, and strategic partnerships with fintech applications are essential to boost their usage, a recent report said.