A retail sandbox for its central bank digital currency project has been launched by RBI

Current Context: The Reserve Bank of India (RBI) has launched a retail sandbox for its Central Bank Digital Currency (CBDC) on 8 October 2025.

• It provides a controlled testing environment for fintech firms to develop and refine e-Rupee retail applications.
• The retail CBDC pilot had originally begun on 1 December 2022. 
• Currently, around 7 million users are already part of India’s CBDC ecosystem.
• The sandbox aims to boost innovation, expand adoption, and ensure regulatory oversight. This move positions India among the global leaders in CBDC experimentation.

Question:

Q.1 Which digital currency is being tested in the RBI retail sandbox?
a) e-Rupee
b) Bitcoin
c) Libra
d) Ethereum

Answer: a) The e-Rupee is India’s official Central Bank Digital Currency, which fintech firms can now test and develop applications for in a controlled environment.