Cred Unlocks E-Rupee Access for Users as India Expands Digital Currency Pilot

Key Takeaways

• Indian Central Bank has onboarded its first private firm to test the e-rupee for retail users.
• Fintech firm Cred has become the first private company to offer e-rupee services to select customers.
• The Reserve Bank of India has been testing the Indian Central Bank Digital Currency (CBDC) since December 2022.

Indian fintech firm Cred has joined the Reserve Bank of India’s (RBI) digital rupee pilot program, marking a significant step in expanding the e-rupee’s use case in the private retail sector.

Cred’s integration of the central bank’s digital currency (CBDC) makes it the first non-bank platform to offer the e-rupee, surpassing major competitors such as Google Pay, PhonePe, Amazon Pay, and MobiKwik.

These well-known payment platforms had also been eyeing the opportunity to integrate the e-rupee, but it was Cred that secured the distinction.

Cred Launches e-Rupee Wallet in Beta

As part of the pilot, Cred unveiled a beta version of its e-wallet, initially accessible to a select group of users.

These “whitelisted” Cred members will be able to link their e-rupee wallets to UPI (Unified Payments Interface) bank accounts and send or receive transactions to other CBDC wallets.

The e-wallet supports transactions up to Rs 10,000 per transfer, with a daily limit of Rs 50,000 and a total storage capacity of Rs 1 lakh. Additionally, merchant transactions through the e-rupee wallet will incur zero fees.

This move marks a major development in India’s CBDC testing.

While the RBI began testing the e-rupee in December 2022, its initial scope was limited to banks under its purview.

In April 2024, however, the central bank expanded the program to include private payment firms, allowing them to integrate the e-rupee.

Uncertainty in Crypto Regulation

India’s strong push toward adopting a Central Bank Digital Currency (CBDC) comes at a time when other countries, including the U.S. and European nations, are making strides in developing crypto regulatory frameworks and adopting Bitcoin reserves.

Yet, India remains focused on its CBDC initiative, even as it grapples with the absence of a comprehensive regulatory structure for cryptocurrencies.

Despite years of discussion, India’s finance ministry has yet to introduce a detailed crypto regulation framework.

The government has imposed a 30% tax on crypto gains but has been reluctant to offer legal protections for crypto traders in the country despite the sector’s growing popularity.

The Reserve Bank of India has also remained steadfast in its opposition to regulating the broader crypto market, citing concerns over volatility and the associated risks of such digital assets.