RBI is in talks with the central bank
This is expected to significantly reduce the cost of remittances and checks currently imposed at various levels on cross-border transactions, making them economical, efficient and faster, sources said. He said this is particularly important for India, which sees massive remittance inflows, where costs can be reduced significantly.
India is the leading recipient of inward remittances. According to a report by IDFC First Bank, a major share comes from the United States (27.7 percent of gross inflows), followed by the United Arab Emirates (19.2 percent), the United Kingdom (10.8 percent), Saudi Arabia (6.7 percent), and Singapore (6.6 percent).
According to RBI data, Indians living abroad have sent more than $107 billion so far in 2025-26 (FY26). They paid out more than $132 billion last fiscal year – a record high. In FY24, it was slightly more than $117 billion.
While RBI is testing various use cases of CBDC in both retail and wholesale sectors, it has not been launched on a full scale as the central bank is adopting a cautious approach. Sources said it will continue to work with countries to develop CBDC rails for cross-border transactions.
The RBI has stuck to its stance that it is in no rush to launch a CBDC, as its most promising use case – cross-border payments – depends on other countries simultaneously launching their own CBDCs for the system to work effectively.
RBI launched the pilot project of CBDC wholesale segment in November 2022 and retail CBDC in December the same year. Recently, the central bank said that the number of retail CBDC transactions has crossed 120 million, with the total value so far exceeding ~₹28,000 crore.
The RBI said progress on the retail CBDC pilot is broadly in line with expectations, with a focus on programmability, coordination with state and central governments, exclusive products for banks and enabling cross-border payments. Currently, more than 8 million users are using the CBDC.
A CBDC is a digital form of legal tender issued by a central bank. It is similar to sovereign paper currency, but takes a different form, is exchangeable at par with existing currency, and will be accepted as a medium of payment, legal tender, and secure store of value. CBDCs appear as liabilities on the central bank’s balance sheet.
Amid the rise of private digital currencies, the RBI has been the biggest supporter of CBDCs, especially for cross-border transactions. The RBI has repeatedly cautioned against crypto assets including stable coins, saying that central bank money should remain the final settlement asset and the anchor of confidence in the monetary system.
In its Financial Stability Report (FSR) released in December 2025, the RBI said it has maintained a cautious stance on crypto assets, including stable coins, while giving priority to sovereign digital infrastructure to protect monetary sovereignty and maintain financial stability amid global changes. The central bank also strongly advocated that countries prioritize CBDCs over stablecoins to maintain confidence in money and maintain financial stability.
Additionally, the RBI highlighted that CBDCs can achieve the benefits that stablecoins claim to provide – efficiency, programmability and instant settlement – but with the reliability and security of central bank money.
“Therefore, RBI strongly advocates that countries prioritize CBDCs over privately issued stable coins to maintain trust in money, maintain financial stability and design next-generation payments infrastructure that is faster, cheaper and secure.”
In October 2025, RBI Governor Sanjay Malhotra, speaking at the annual meeting of the World Bank Group and the International Monetary Fund (IMF) in Washington, urged several central banks to promote and use CBDCs instead of stablecoins to facilitate international payments.
“Until other countries also adopt CBDC, we will not see the benefits of CBDC as far as cross-border payments are concerned. Therefore, I would urge everyone present from central banks and other jurisdictions to promote CBDC as it has huge advantages over stable coins,” he had said.
