India Launches Offline Digital Rupee for Payments Without Internet
India has taken a significant step in digital finance by launching the offline version of the Digital Rupee (e₹), enabling seamless payments even in areas without internet connectivity. Announced at the Global Fintech Fest 2025 in Mumbai, this Central Bank Digital Currency (CBDC) aims to boost financial inclusion across rural and remote regions.
What is the Digital Rupee?
The Digital Rupee, or e₹, is India's official CBDC issued directly by the Reserve Bank of India (RBI). It functions as a digital equivalent of physical cash, carrying the same legal tender status and sovereign guarantee while offering enhanced security and ease of use. Unlike UPI, which facilitates transfers between bank accounts, e₹ operates like actual digital cash stored in secure wallets, allowing instant transactions without needing constant bank access.
How the Offline Feature Works
The standout innovation of e₹ is its offline capability, designed for low-connectivity environments. Users can make payments using Near Field Communication (NFC)-based tap technology, where NFC-enabled smartphones or devices are simply tapped together to transfer funds without any internet or telecom signals. Alternatively, telecom-assisted offline payments require only minimal network signals, making it viable in areas with poor coverage and mimicking the simplicity of cash transactions.
Getting Started
The pilot rollout involves 15 major banks, including State Bank of India (SBI), ICICI Bank, HDFC Bank, and Union Bank of India, which provide e₹ wallets downloadable from the Google Play Store or Apple App Store. Users register via these apps to hold up to ₹1 lakh in their wallets, with daily limits of ₹50,000 or 20 transactions after an initial cooling-off period. This setup supports instant person-to-person (P2P) and person-to-merchant (P2M) payments, expanding accessibility nationwide.
Programmable Features and Real-World Applications
e₹ introduces programmability, allowing funds to be restricted for specific purposes, such as expiry dates, geolocations, or merchant categories, which enhances targeted financial aid. This feature is already in use in government schemes like Gujarat’s G-SAFAL for livelihood assistance on agri-inputs and Andhra Pradesh’s DEEPAM 2.0 for LPG subsidies, ensuring transparent and efficient delivery. RBI Governor Sanjay Malhotra emphasized that e₹ complements India’s Digital Public Infrastructure, including Aadhaar and UPI, to drive FinTech innovation and sustainable growth in underserved areas.
By enabling offline transactions, e₹ addresses connectivity gaps in rural India, positioning the country as a global leader in operationalizing a versatile CBDC. This launch builds on the RBI’s pilot project started in December 2022, promoting a cashless economy while retaining cash-like convenience. As adoption grows, it could transform payments in remote markets, subsidies, and corporate disbursements, fostering broader economic participation