RBI plans cross-border CBDC pilots amid digital currency experiments
May 29, 2026
Central bank will expand digital rupee experiments in 2026-27, focusing on cross-border payments, asset tokenisation, programmable money and welfare applications
The Reserve Bank of India (RBI) said it would explore bilateral and multilateral cross-border central bank digital currency (CBDC) pilots in 2026-27, as the central bank expands experiments around digital payments, asset tokenisation and programmable money.
The RBI, in its annual report for 2025-26, said it would pursue cross-border CBDC pilots “with select use cases” and participate in multilateral projects focused on technical and governance standards for cross-border payments.
The plans come as the RBI deepens engagement with foreign central banks on CBDC-linked payment infrastructure. In March, Business Standard reported that the RBI was in talks with central banks from four to five countries, including Asian economies and advanced European economies, to develop cross-border CBDC transaction rails for wholesale and retail payments.
Additionally, the RBI, in its annual report, said that in 2026-27 it would widen domestic CBDC pilots to include additional use cases in direct benefit transfer schemes and business applications. It plans to introduce a framework under its CBDC and Asset Tokenisation Sandbox for testing products and services built around CBDC infrastructure.
The central bank also said it would explore further pilots involving tokenisation of financial assets alongside settlement using CBDC, while expanding participation in such pilots.
RBI has taken a gradual approach to the rollout of digital currency despite being among the earlier major central banks to begin live pilots. The RBI launched a wholesale CBDC pilot in November 2022 and a retail pilot a month later. It has since expanded the scope of testing but has not announced a full-scale launch.
According to the annual report, the retail CBDC pilot has progressed “broadly in line with expectations”, with ongoing work focused on programmability, integration with state and central government schemes, specialised banking products and cross-border payment capabilities.
During 2025-26, the central bank expanded the use of programmable CBDC in government welfare programmes. In Gujarat, Puducherry and Chandigarh, beneficiaries under the public distribution system received food subsidies through programmable CBDC that could be redeemed for eligible goods at fair price shops and designated merchants.
On the tokenisation side, the RBI developed the Unified Markets Interface (UMI), a platform designed to facilitate tokenisation of financial assets while using wholesale CBDC for settlement. A pilot involving tokenised certificates of deposit was initiated on the platform.
The RBI also signed a memorandum of understanding with the Monetary Authority of Singapore on digital asset collaboration and held bilateral discussions with Singapore and the Central Bank of the UAE on operationalising cross-border CBDC pilots.
In addition, the central bank joined BIS Innovation Hub initiatives, including Project Rialto and the second phase of Project Mandala, both aimed at improving cross-border payments using CBDCs.
A CBDC is a digital form of sovereign currency issued by a central bank and appears as a liability on the central bank's balance sheet. It is exchangeable at par with physical currency and functions as legal tender.
[The Business Standard]
