E‑Rupee Pilots Put India at Forefront of BRICS Digital Currency Push

India is accelerating adoption of its central bank digital currency (CBDC), the e‑rupee, by routing welfare payments through pilot programs, while simultaneously preparing to showcase a BRICS‑wide digital currency initiative at the bloc’s 2026 summit. The move aims to reduce subsidy leakage, create a clear use case for the e‑rupee, and position India as a leader in cross‑border CBDC integration.

Key Highlights of India’s E‑Rupee Push

• 10 pilot programs are underway, channeling parts of India’s $80 billion welfare system through the e‑rupee.
• Maharashtra (Phulenagar village): Farmers receive programmable subsidies covering up to 80% of drip‑irrigation costs, spendable only at approved vendors.
• Gujarat: Target to onboard 7.5 million households eligible for subsidized food by June 2026, using e‑rupee transfers.
• Adoption figures: About 10 million users as of April 2026, with cumulative transactions of $3.6 billion since launch in December 2022 — small compared to UPI’s $300 billion monthly volume.

Strategic Context: BRICS Digital Currency Plan

• The Reserve Bank of India (RBI) is urging the government to advance a CBDC linkage proposal across BRICS economies (Brazil, Russia, India, China, South Africa).
• Goal: Streamline cross‑border trade and reduce reliance on the U.S. dollar.
• Risk: The initiative faces geopolitical pressure, with U.S. tariffs already imposed on Indian imports tied to Russian crude purchases.

Comparative Snapshot: E‑Rupee vs UPI

Feature	E‑Rupee (CBDC)	UPI (Unified Payments Interface)
Launch	Dec 2022	2016
Users (Apr 2026)	~10 million	300+ million
Monthly Transactions	~$0.3 billion	~$300 billion
Programmability	Yes (restricted use cases)	No (open payments)
Adoption Strategy	Welfare pilots, subsidies	Organic consumer/business uptake

Risks & Challenges

• Adoption gap: Welfare pilots may create a captive user base but not necessarily genuine enthusiasm.
• Geopolitical backlash: U.S. opposition to BRICS currency alternatives could trigger trade tensions.
• Competition with UPI: The e‑rupee must prove utility beyond welfare transfers to compete with India’s already dominant digital payments ecosystem.

Outlook

• Short term (2026): Welfare pilots will expand, especially in agriculture and food distribution.
• Medium term (2026 BRICS Summit): India will push for a CBDC interoperability framework across BRICS.
• Long term: Success depends on whether the e‑rupee can evolve from a welfare‑linked instrument into a mainstream payment option with cross‑border utility.

Cred Becomes 1st Fintech Platform to Roll Out Access to CBDC e-Rupee

Cred, a fintech platform backed by Tiger Global and Peak XV, has become the first fintech company to roll out access to India's central bank digital currency (CBDC), known as the e-rupee.

The Reserve Bank of India (RBI) initiated a pilot for the e-rupee in December 2022, initially allowing only banks to offer access. However, in April 2024, the RBI expanded the pilot to include payment firms.

Cred will initially roll out access to its e-rupee wallet to a select set of users, with the issuance of e-rupee tokens facilitated by YES Bank. The goal is to make e-rupee transactions seamless and drive adoption among creditworthy users.

Kunal Shah, the founder of Cred, stated that their goal is to make e-rupee transactions frictionless and drive its adoption among the most creditworthy Indians.

While e-rupee transactions had surged initially, they have since declined, reflecting the global challenge central banks face in popularizing digital currencies.

Cred's platform is known for catering to creditworthy users, making it an ideal partner for the initial rollout of the e-rupee to ensure a smooth and reliable implementation.

Other payment firms like GooglePay, PhonePe, AmazonPay, and MobiKwik are also expected to join the digital currency pilot.