TLDR
- India runs 10 pilots using e-rupee in $80B welfare system
- Farmers receive up to 80% subsidy via programmable CBDC wallets
- E-rupee usage reaches 10 million users with $3.6B transactions
- India plans BRICS CBDC link to reduce dollar reliance
- Welfare pilots target corruption and payment delay
India is using welfare payments to expand its digital rupee trials and increase adoption. The move comes as policymakers prepare to discuss cross-border CBDC plans within BRICS.
The Reserve Bank of India is testing how subsidies can flow through digital wallets. These efforts aim to improve delivery and build trust in the system.
Welfare pilots drive e rupee adoption across sectors
India has launched about 10 pilot programs using its central bank digital currency. These pilots route funds from the country’s $80 billion welfare system. The aim is to reduce delays and limit misuse.
Farmers and low-income groups are early participants in these trials. Authorities are focusing on agriculture and food distribution programs. These sectors often face payment gaps and leakages.
#India’s Central Bank Digital Currencies (CBDCs) push has entered welfare delivery. The launch of a CBDC-based Public Distribution System in #Gujarat uses programmable digital rupees to dispense grain through automated ATMs—moving from pilot theory to functional deployment:…
— ORF (@orfonline) April 24, 2026
A farmer in Maharashtra used e-rupee funds to install irrigation equipment. The subsidy covered most of the cost through a digital wallet. This reduced the need for upfront payments and long waits.
Officials said the system ensures funds reach intended users. Vijay Kolekar said, “”The programmable aspect of CBDC ensures funds cannot be misused while also removing upfront payment needs””.
Programmable payments improve subsidy delivery
The e-rupee allows funds to be programmed for specific uses. This means subsidies can only be spent at approved vendors. As a result, misuse becomes harder and tracking becomes easier.
In one district, nearly 1,400 farmers applied for irrigation subsidies through the system. Vendors also reported higher demand due to faster payment flows. This has improved access to equipment and services.
Another pilot in Gujarat targets millions of households for food subsidies. Authorities plan to onboard all eligible families in phases. This could expand CBDC usage quickly if successful.
An expert said, “”India is looking for a strong use case that can set CBDC apart””. The welfare route offers a clear and practical path.
Adoption challenges remain as BRICS plans advance
India launched the e-rupee in late 2022, but adoption has been gradual. Total transactions stand at about $3.6 billion so far. This is small compared to UPI, which processes $300 billion monthly.
User numbers have reached around 10 million, but regular usage is still limited. Earlier efforts included salary payments through CBDC wallets. However, such steps did not sustain high activity levels.
India is also exploring cross-border use with BRICS nations. The plan involves linking CBDCs of member countries. This could support trade and reduce reliance on the US dollar.
Global interest in CBDCs is rising, with many countries running pilot programs. India’s approach focuses on practical use cases and gradual expansion. The outcome of these pilots may shape future policy decisions.
