As it increases its trials with digital payments, asset tokenization, and programmable money, the Reserve Bank of India (RBI) announced that it would investigate bilateral and multilateral cross-border central bank digital currency (CBDC) pilots in 2026–2027.
The RBI stated that it would pursue cross-border CBDC pilots "with select use cases" and take part in multilateral projects centered on technical and governance standards for cross-border payments in its 2025–2026 annual report.
The ambitions coincide with the RBI's increased collaboration with international central banks on payment infrastructure connected to CBDCs.Business Standard revealed in March that the RBI was negotiating the development of cross-border CBDC transaction rails for wholesale and retail payments with central banks from four to five nations, including advanced European and Asian economies.
Furthermore, the RBI stated in its annual report that it would expand domestic CBDC pilots in 2026–2027 to incorporate more use cases in business applications and direct benefit transfer programs. It intends to launch a platform for testing goods and services based on CBDC infrastructure under its CBDC and Asset Tokenization Sandbox.
Additionally, the central bank stated that it would increase participation in future experiments involving the tokenization of financial assets in addition to CBDC settlement.

Despite being one of the first global central banks to start live pilots, the RBI has adopted a methodical approach to the introduction of digital money. In November 2022, the RBI initiated a wholesale CBDC pilot, followed a month later by a retail pilot. Since then, it has broadened the testing scope without announcing a full-scale launch.
The retail CBDC pilot has advanced "broadly in line with expectations," according to the annual report, with continued efforts concentrated on programmability, integration with state and federal programs, specialized banking products, and cross-border payment capabilities.
The central bank increased the use of programmable CBDC in government social programs in 2025–2026.Beneficiaries of the public distribution system in Gujarat, Puducherry, and Chandigarh received food subsidies via programmed CBDC, which could be exchanged for qualified commodities at fair price stores and approved merchants.
Regarding tokenization, the RBI created the Unified Markets Interface (UMI), a technology that makes it easier to tokenize financial assets while utilizing wholesale CBDC for settlement. On the platform, a tokenized certificate of deposit pilot was started.
Additionally, the RBI undertook bilateral talks with Singapore and the Central Bank of the United Arab Emirates about operationalizing cross-border CBDC trials and inked a memorandum of understanding with the Monetary Authority of Singapore on digital asset coordination.The central bank also participated in BIS Innovation Hub projects, such as Project Rialto and Project Mandala's second phase, which are both focused on enhancing CBDC-based cross-border payments.
A central bank issues CBDCs, which are digital versions of sovereign currency that show up as liabilities on the central bank's balance sheet. It serves as legal tender and can be exchanged on an equal basis with actual money.