Central Bank Digital Currency (CBDC) – Transformation of India’s Payment System and Adaptability Survey

The concept of currency in India is fundamentally based on trust. This trust is established through a central authority, namely the Reserve Bank of India (RBI), which is responsible for printing, issuing, and circulating currency notes in the country. In addition to traditional currency, there is also a digital form of currency backed by the RBI, designed for transactions, lending, and value storage. This is known as Central Bank Digital Currency (CBDC). Specifically, India’s CBDC is called as E-Rupee (e₹). This paper presents a conceptual study of the CBDC, exploring the underlying technologies and their potential to transform India's payment system. It emphasizes that the CBDC is not intended to replace the existing monetary system; rather, it serves as an additional component. Furthermore, a survey on digital payment behaviour is conducted to examine the adaptability of this system Keywords: Digital currency, E-Rupee (e₹), Central Banking Digital Currency (CBDC), Blockchain Technology, Smart contract.