Explainer: What is CBDC? Why RBI is digitising the rupee

On Friday, the Reserve Bank of India (RBI) released its concept note for central bank digital currency (CBDC), announced by Finance Minister Nirmal Sitharaman in Parliament during her budget speech in February. The RBI clarified that the concept note aims to create awareness about CBDC and the features of the digital rupee (e₹). In addition, it explains the objectives, choices, benefits, and risks of CBDCs in India.