Digital Rupee (CBDC): Benefits and Challenges in India The Digital Rupee (e₹) is India’s Central Bank Digital Currency (CBDC), issued by the Reserve Bank of India. It is a digital form of sovereign money that works as an electronic counterpart to physical cash. The main purpose of the Digital Rupee is to make payments and settlements faster, reduce cash-handling expenses, and improve access to digital financial services. However, issues such as protecting user data, ensuring privacy, and developing the necessary digital infrastructure remain important challenges.