Central bank tests tokenised certificates of deposit on a new platform, while widening digital rupee pilots for subsidies and cross-border payments.
The Reserve Bank of India has expanded digital rupee pilots into government subsidy programmes and launched a pilot for tokenised certificates of deposit, marking a broader push to test the use of central bank digital currency in financial markets and public-sector payments.
The central bank said it initiated multiple central bank digital currency, or CBDC, pilots during FY26 under direct benefit transfer schemes run by the Centre and state governments. It also developed the Unified Markets Interface, or UMI, a platform designed to facilitate the tokenisation of financial assets while using wholesale CBDC for settlement. A pilot for tokenised certificates of deposit has been launched on the platform.
The initiatives indicate that the RBI's digital currency programme is moving beyond retail payment experiments towards testing financial market instruments, government payments and cross-border applications. The developments were disclosed in the RBI's annual report for FY26.
ALSO READ: RBI Annual Report: Central Bank's Balance Sheet Expands 20.6% To Rs 91.97 Lakh Crore In FY26
Subsidy Pilots
The RBI said programmable CBDC was used in direct benefit transfer pilots linked to food subsidy programmes.
In Gujarat, Puducherry and Chandigarh, beneficiaries under the public distribution system received food subsidies through programmable CBDC. The digital currency could be redeemed only for eligible goods at fair price shops and designated merchants.
The central bank said the pilots leveraged the programmability features of CBDC, allowing payments to be used for specific purposes.
Tokenised Assets
The RBI said it developed the Unified Markets Interface as a multi-layer platform to support tokenisation of financial assets and improve settlement efficiency through wholesale CBDC.
Separately, the central bank said a pilot for the issuance and trading of certificates of deposit in tokenised form has commenced on the platform, with settlement taking place through wholesale CBDC.
The annual report said the initiative is intended to leverage emerging technologies such as tokenisation and distributed ledger technology in financial markets.
ALSO READ: RBI Annual Report: India Growth To Hold At 6.9% In FY27 Despite Middle-East Conflict Risks
Cross-Border Plans
The RBI also stepped up work on cross-border CBDC projects during the year.
The central bank signed a memorandum of understanding on digital asset collaboration with the Monetary Authority of Singapore. It also held discussions with the Monetary Authority of Singapore and the Central Bank of the UAE to operationalise a cross-border CBDC pilot.
In addition, the RBI joined Project Rialto and the second phase of Project Mandala, two initiatives led by the Bank for International Settlements Innovation Hub that focus on improving cross-border payments using CBDCs.
Looking ahead, the RBI said it plans to expand CBDC pilots to additional direct benefit transfer schemes and business applications. It also intends to explore further tokenisation pilots, broaden participation in asset-tokenisation projects and pursue bilateral and multilateral cross-border CBDC experiments.
"The Reserve Bank developed the Unified Markets Interface (UMI), a multi-layer platform to facilitate tokenisation of financial assets while leveraging wholesale CBDC to enhance settlement efficiencies," the annual report said.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.