India's e-Rupee: From Pilot to Rs 1,000 Crore Circulation by 2025
| Category | Key Facts |
|---|---|
| Launch & Growth | - Launched in December 2022 as a pilot. - Circulation crossed ₹1,000 crore by March 2025 (RBI annual report). - 60 lakh+ retail users and 17 major banks participating. |
| Formats | - Wholesale CBDC (CBDC-W): Settles secondary market transactions in government securities. - Retail CBDC (CBDC-R): For public use in daily transactions. |
| Definition & Features | - Sovereign digital currency (RBI-issued). - Tokenized digital form of physical cash. - Legal tender, distributed via banks. - No interest earned. |
| How It Works | - Not account-based (unlike UPI/NEFT). - Stored in digital wallets (no bank account needed). - Issued in standard denominations (₹10, ₹100, ₹500, etc.). |
| Tax Treatment | - Not a capital asset (excluded under IT Act Section 2(14)). - Exempt from GST (treated as currency). - No capital gains tax (cannot be traded like crypto/stocks). |
| Potential Tax Risks | - May be treated like physical cash under tax laws. - High-value transactions could violate Sections 269SS/269ST (cash limits). - Penalties possible for business/real estate use. |
| Key Concerns | - Lack of explicit tax guidelines for e-rupee. - Risks of misuse due to anonymity. - Needs regulatory clarity to replace physical cash effectively. |