Indian fintech giant Cred has become the first non-bank platform to roll out access to the e-Rupee, India’s central bank digital currency (CBDC). This development follows the Reserve Bank of India’s (RBI) decision to expand its CBDC pilot programme beyond banks, opening the door for private payment firms to participate.
Cred, backed by investors including Tiger Global and Peak XV, announced that its e-Rupee wallet will initially be available to a select group of users. The wallet, supported by Yes Bank, will facilitate seamless transactions and offer integration with Unified Payments Interface (UPI) bank accounts. Users can link their accounts to the wallet to send and receive funds, bridging the gap between traditional banking and digital currency systems.
The wallet supports transactions up to ₹10,000 per transfer, with a daily limit of ₹50,000. Users can store up to ₹1 lakh in the wallet, and merchant transactions conducted through it will be free of fees. Cred’s founder, Kunal Shah, described the initiative as a step toward “frictionless transactions” aimed at promoting the adoption of the e-Rupee among India’s most creditworthy users.
This rollout represents a significant milestone for the e-Rupee, which has been in testing since late 2022. Initially limited to wholesale transactions managed by public sector banks, the pilot was expanded in April 2024 to include private players such as Cred. Other firms, including Google Pay, PhonePe, Amazon Pay, and MobiKwik, have also expressed interest in joining the initiative.
A Digital Currency for Everyday Use
The e-Rupee wallet operates similarly to popular UPI-based digital wallets, offering users the convenience of instant transfers. However, as a CBDC backed directly by the RBI, it ensures stability and a level of security unmatched by private wallets. The inclusion of offline functionality and programmability is also expected to set the e-Rupee apart, although these features are still under development.
India’s digital payments landscape is already dominated by UPI, with apps like PhonePe and Google Pay commanding significant market shares. By bringing the e-Rupee to fintech platforms, the RBI aims to expand its usage and establish the CBDC as a stable alternative for digital transactions.
Revolutionising Cross-Border Payments
India’s focus on CBDCs aligns with its broader goal of improving cross-border remittances. As the world’s largest recipient of inbound remittances, India has long grappled with high fees and slow processing times for these transactions. RBI Governor Shaktikanta Das has highlighted the potential of the e-Rupee to revolutionise this process, making cross-border payments faster, cheaper, and more efficient.
While cryptocurrencies like Bitcoin and Ethereum continue to grow globally, India remains cautious about their adoption. The government and regulators have consistently emphasised the volatility and risks associated with private digital currencies, instead prioritising the development of a secure, government-backed digital alternative.
Expanding Financial Inclusion
The RBI’s partnership with Cred signals a strategic shift in India’s digital payment ecosystem. By integrating the e-Rupee with existing UPI systems and enabling fee-free merchant transactions, the initiative aims to make digital payments more accessible and inclusive.
As the pilot expands and more firms join, the e-Rupee has the potential to become a cornerstone of India’s digital economy, driving innovation and enhancing financial efficiency at both domestic and international levels.
