- The feature operates within the RBI’s CBDC framework and represents a practical use case for making the digital rupee more programmable and purpose-specific.
- Bank: Bank of India, a public-sector bank, introduced the programmable e₹ feature on its existing CBDC platform. The bank had earlier showcased programmable digital-currency capabilities among its digital initiatives at the Global FinTech Fest 2026.
- Technology partner: The CBDC platform and new programmable capability were developed with Montran India.
- What is programmable e₹? It allows a user to attach predefined conditions or purposes to digital-rupee payments. This means the recipient may be able to use the transferred e₹ only for the purpose specified by the sender.
- Auto-issuance: Users can specify the amount, frequency and intended purpose of a recurring payment. The system can then automatically credit e₹ to the beneficiary’s CBDC wallet without requiring the sender to manually initiate the transaction each time.
- Example: A user could schedule a fixed amount of digital rupees to be transferred every month for a particular approved purpose. The programmable conditions remain associated with the funds, helping ensure that they are used as intended.
- Digital Rupee: The e₹ is India’s Central Bank Digital Currency, issued by the Reserve Bank of India (RBI). It is a digital form of sovereign currency and is different from privately issued cryptocurrencies.
- Guidelines: The Bank of India implementation was developed in line with RBI and NPCI guidelines applicable to the CBDC ecosystem.
- Importance: Programmability can make CBDC useful for recurring payments, targeted benefits, corporate disbursements and other situations where the payer wants both automation and control over the purpose of spending.
Question
Q1. Bank of India launched its user-level programmable digital rupee and auto-issuance feature in partnership with which technology company?a) Infosys
b) TCS
c) Montran India
d) Razorpay
Answer: c) Montran India. Bank of India’s programmable CBDC platform allows users to automate recurring e₹ transfers and specify the intended purpose for which the transferred digital rupees may be used.
