RBI's offline digital rupee is here: Pay with e₹ even without internet

RBI's offline digital rupee lets users pay with e₹ without internet, bringing cash-like convenience to remote areas and simplifying digital transactions

The Reserve Bank of India (RBI) has taken a significant step in India’s digital finance journey with the launch of the offline digital rupee (e₹). Announced at the Global Fintech Fest 2025 in Mumbai, this feature allows users to make payments even in areas with limited or no internet connectivity, offering a cash-like experience in digital form.

What is digital rupee?

The digital rupee, or e₹, is India’s central bank digital currency (CBDC), representing a digital version of the physical rupee. Issued directly by the RBI, e₹ carries the same trust as cash and is stored in secure digital wallets provided by banks. Unlike Unified Payments Interface (UPI), which moves money between bank accounts, e₹ functions like digital cash, users can send, receive, or pay instantly without needing a bank account for every transaction. e₹ wallets can also scan UPI QR codes, enabling seamless merchant payments.

 

Banks offering e₹ wallets

Currently, 15 banks are part of the retail CBDC pilot and provide digital wallets for public use:

 

·  State Bank of India (SBI): eRupee by SBI

 

·  ICICI Bank: Digital Rupee by ICICI Bank

 

·  IDFC First Bank: IDFC First Bank Digital Rupee

 

·  YES Bank: Yes Bank Digital Rupee

 

·  HDFC Bank: HDFC Bank Digital Rupee

 

·  Union Bank of India: Digital Rupee by UBI

 

·  Bank of Baroda: Bank of Baroda Digital Rupee

 

·  Kotak Mahindra Bank: Digital Rupee by Kotak Bank

 

·  Canara Bank: Canara Digital Rupee

 

·  Axis Bank: Axis Mobile Digital Rupee

 

·  IndusInd Bank: Digital Rupee by IndusInd Bank

 

·  Punjab National Bank (PNB): PNB Digital Rupee

 

·  Federal Bank: Federal Bank Digital Rupee

 

·  Karnataka Bank: Karnataka Bank Digital Rupee

 

·  Indian Bank: Indian Bank Digital Rupee

 

Users can download these apps from Google Play Store or Apple App Store, register, and start using the wallets for person-to-person or person-to-merchant payments. There are no fees, minimum balance requirements, or interest payable on wallet balances, and wallets can be recovered even if the mobile device is lost.

 

How does the offline feature work?

 

The standout feature of e₹ is its offline functionality, designed for remote and rural areas:

 

·  Telecom-assisted offline payments: Requires minimal network signals.

 

·  NFC-based tap payments: Works entirely without internet or telecom signals.

 

This ensures transactions can take place anytime, anywhere, mirroring the convenience of cash. Payments settle instantly between wallets, without needing the sender or receiver to access their bank accounts.

 

Programmable digital cash

e₹ introduces programmability features, allowing funds to be restricted to specific purposes, expiry dates, geolocations, or merchant categories. This is already being used in select government schemes:

 

·  Gujarat’s G-SAFAL scheme: Livelihood assistance restricted to specific agri-inputs.

 

·  Andhra Pradesh’s DEEPAM 2.0: LPG subsidies delivered via programmable CBDC.

 

Such features can also facilitate corporate disbursements, targeted lending, and interest subvention schemes.

 

Driving inclusion and sustainable growth

RBI Governor Sanjay Malhotra, in his keynote at the Fintech Fest, emphasised that India’s Digital Public Infrastructure (DPI), anchored by Aadhaar, UPI, and DigiLocker has expanded financial inclusion and created a robust foundation for FinTech innovation. The digital rupee forms a critical layer in this architecture, complementing the FinTech ecosystem while providing secure, scalable, and efficient financial services.

 

The RBI sees e₹ as a tool to strengthen India’s digital economy, particularly in underserved regions. With offline and programmable features, India becomes one of the first countries globally to operationalise a CBDC that can be used anywhere, without dependence on constant internet connectivity.