Bank of India Launches Programmable Digital Rupee

Bank of India launched user-level programmable digital rupee functionality with auto-issuance capability on its Central Bank Digital Currency platform on 29 September 2026. The feature allows account holders to schedule automatic transfers of digital rupees, or e₹, to a beneficiary’s CBDC wallet at a fixed amount and frequency.

Programmable Central Bank Digital Currency

Programmable Central Bank Digital Currency is a form of digital money issued by a central bank with rules embedded for transfer, use, or redemption. In India, the digital rupee is issued by the Reserve Bank of India and is commonly written as e₹.

Auto-payment and Purpose-based Controls

The new feature allows recurring payments without manual monthly transfers. It also allows the account holder to restrict how the recipient can spend the funds through purpose-based usage controls.

• The feature can be used for recurring payments such as allowances and education expenses.
• The system supports fixed-amount transfers at a chosen frequency.
• The recipient’s CBDC wallet can receive funds with spending restrictions set by the sender.
• The functionality is designed for user-level programmability on the CBDC platform.

Platform and Institutional Framework

The CBDC platform was developed by Montran India. Bank of India stated that the feature aligns with Reserve Bank of India and National Payments Corporation of India guidelines.

Use Cases in Digital Payments

Programmable digital rupee systems can support welfare disbursement, recurring household transfers, and other purpose-bound payments. Such systems operate within the broader CBDC framework used for retail digital payments.

Important Facts for Exams

• CBDC stands for Central Bank Digital Currency.
• The Reserve Bank of India launched the digital rupee in pilot form in India.
• e₹ is the symbol used for the Indian digital rupee.
• Programmability in CBDCs allows rules to be attached to payment use and transfer conditions.

Related Institutional Terms

Bank of India is a public sector bank in India. The National Payments Corporation of India operates major retail payment systems such as UPI and RuPay.