India's Central Bank Pilots Digital Rupee for Welfare Payments, Eyes BRICS CBDC Interoperability

Gate News message, April 24 — India’s central bank is piloting digital rupee (e-rupee) payments across approximately 10 initiatives to distribute roughly $80 billion in welfare subsidies, aiming to reduce leakage and corruption while identifying practical use cases for its CBDC. In Maharashtra, farmers receive programmable subsidies covering 80% of drip irrigation costs, redeemable only at designated merchants. Gujarat plans to migrate food subsidies for 7.5 million eligible households to e-rupee by June.

Since its launch in December 2022, e-rupee has processed approximately $3.6 billion in cumulative transactions, substantially below the Unified Payments Interface (UPI), which handles roughly $300 billion monthly. The central bank is simultaneously advancing a proposal for the 2026 BRICS summit to interconnect member nations’ CBDCs, reducing reliance on the U.S. dollar.

However, the initiative carries geopolitical risks, potentially triggering U.S. tariff increases and retaliatory measures.