RBI Aims To Expand CBDC Pilots, Plans AI Framework In FY26

The Reserve Bank of India is ramping up its efforts to revolutionise the digital payments landscape with plans to expand Central Bank Digital Currency initiatives and introduce a framework for ethical AI adoption in 2025-26, according to its latest annual report.

The RBI is actively exploring pilot projects for CBDCs focused on cross-border payments, both on bilateral and multilateral fronts. These pilots aim to address critical challenges such as turnaround time, operational efficiency, and transparency in international transactions.

By leveraging CBDCs, the RBI envisions a more seamless and secure global payment ecosystem.

Building on the momentum, the RBI plans to broaden the scope and coverage of CBDCs in FY26 by introducing new use cases and advanced features. A notable addition will be the integration of business-to-business functionality new use cases within the Unified Lending Interface.

These initiatives have come as retail CBDC issuances saw significant growth in the year ended March.

While RBI did not make any strides in wholesale CBDC, its retail CBDC issuances were worth Rs 1,016.46 crore, more than a fourfold increase compared to Rs 234.04 crore in the previous fiscal.

Apart from its digital currency initiatives, the RBI is committed to scaling up mulehunter.aiTM — an AI-powered platform that supports regulatory and supervisory functions.

Recognising the transformative potential of artificial intelligence, the central bank also aims to develop a comprehensive framework for the responsible and ethical adoption of AI technologies in FY26.