{"id":31503,"date":"2025-08-12T12:47:25","date_gmt":"2025-08-12T07:17:25","guid":{"rendered":"https:\/\/www.ixambee.com\/blog\/?p=31503"},"modified":"2025-08-12T12:47:29","modified_gmt":"2025-08-12T07:17:29","slug":"central-bank-digital-currencies-and-digital-payments-ifscas-role-in-indias-next-financial-chapter","status":"publish","type":"post","link":"https:\/\/blog.ixambee.com\/central-bank-digital-currencies-and-digital-payments-ifscas-role-in-indias-next-financial-chapter","title":{"rendered":"Central Bank Digital Currencies and Digital Payments: IFSCA\u2019s Role in India\u2019s Next Financial Chapter"},"content":{"rendered":"\n

Money is changing. Notes and coins are no longer the only way to pay. In India, the shift is led by the digital rupee and the country\u2019s fast-growing UPI system. But behind the scenes, there is another important player\u2014the International Financial Services Centres Authority (IFSCA).<\/p>\n\n\n\n

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IFSCA works from GIFT City in Gujarat. Its job is to make sure that new ideas in finance grow in a safe and useful way. When we talk about the future of CBDC and UPI, we also have to talk about how IFSCA guides this change.<\/p>\n\n\n\n

Understanding the CBDC<\/h2>\n\n\n\n

A Central Bank Digital Currency (CBDC) is just the rupee in digital form. It is created by the Reserve Bank of India, not by private companies. You can hold it in a wallet on your phone, send it instantly, and trust its value because it is backed by the central bank.<\/p>\n\n\n\n

The CBDC in India is called the e-rupee. It is not a cryptocurrency. It is legal tender, just like the cash in your pocket, only without the paper.<\/p>\n\n\n\n

How CBDC Has Grown<\/h2>\n\n\n\n

The RBI started testing the e-rupee in 2022. First, it was used by banks in a wholesale pilot. Then, in December that year, ordinary people and shops began using it in a retail pilot.<\/p>\n\n\n\n

In late 2023, something remarkable happened\u2014more than a million transactions were done in a single day. By mid-2024, the number settled at around 100,000 a day. Still small compared to UPI, but a sign that it works.<\/p>\n\n\n\n

A big step was the offline payment option. This means even a shop in a remote village can take CBDC without internet. In January 2025, fintech firm Cred started offering it. Two months later, Mintoak bought Digiledge to expand CBDC services\u2014the first deal of its kind in India.<\/p>\n\n\n\n

UPI: The People\u2019s Payment System<\/h2>\n\n\n\n

If CBDC is the future, UPI<\/strong> is the present. Since 2016, UPI has changed how India pays. You can send money to a friend, pay a shopkeeper, or settle a bill\u2014any time of day.<\/p>\n\n\n\n

In July 2025, UPI handled over 19 billion transactions. That is more than most countries\u2019 entire banking systems manage in a month.<\/p>\n\n\n\n

UPI is not standing still. The new voice payment feature lets you speak a number or name to send money. Some banks, like Bank of Baroda, have made UPI payments work overseas.<\/p>\n\n\n\n

IFSCA: The Regulator Shaping Digital Finance<\/h2>\n\n\n\n

The IFSCA is not as well known as the RBI, but it plays a vital role. Based in GIFT City, it regulates international financial services in India. That includes banks, insurance, fintech, and more.<\/p>\n\n\n\n

When it comes to digital payments and CBDC, IFSCA\u2019s job is to:<\/p>\n\n\n\n