If you run a small business in India, you’ve already seen how digital payments changed your world after UPI became mainstream. But just like UPI took time to be accepted — and then grew exponentially during the COVID era — another quiet revolution is unfolding.
It’s called the eRupees, India’s RBI digital currency, officially launched and showcased at the Mumbai Fintech 2025 event.
And this time, it’s not just about going cashless — it’s about giving digital cash the feel of real cash.
You may also like to read: This Simple Financing Tool Is Helping MSMEs Grow Without Loans
The eRupee (e₹) is India’s official digital version of the rupee, issued by the Reserve Bank of India (RBI).
Unlike UPI, which moves money between bank accounts, the eRupees is itself money — just like the notes and coins in your wallet, but in digital form.
The eRupee is:
In short, it’s digital cash, not just a balance in your account.
RBI began the retail eRupees pilot with selected banks. As of now, the following banks have officially launched or are piloting eRupees wallets:
Each bank has its own eRupees app, where users can hold, send, and receive eRupee in the form of digital notes and coins — just like real cash denominations.
For example:
In HDFC Bank’s app, you can open your Digital Rupees Wallet, see ₹100, ₹500, ₹2000 “notes” on your screen, and transfer them directly to another wallet — even if it’s with a different bank.
| Feature | UPI | eRupees |
|---|---|---|
| Issuer | Commercial banks | RBI directly |
| Nature | Payment system | Digital currency |
| Settlement | Between accounts | Token transfer (like cash) |
| Internet Needed | Yes | Optional (offline capable) |
| Transaction Fee | May apply (for businesses) | Expected to be minimal |
| User Experience | Transfer | Exchange of digital notes |
Think of UPI as a payment bridge, and eRupees as the digital money itself.
UPI needs both sender and receiver accounts; eRupee only needs wallets — just like handing someone cash.
For India’s MSME sector, eRupees is not just a fancy fintech product — it’s a practical game changer.
Transactions settle instantly — directly from customer wallet to merchant wallet.
RBI is testing offline mode, so eRupees will work even in low-connectivity rural areas, helping local kirana stores and small traders.
Since it’s issued by RBI, it eliminates multiple intermediaries — potentially reducing transaction charges for small businesses.
With bank apps showing notes and coins visually, MSME owners feel like they’re still handling “cash,” just in digital form.
No risk of theft, fake notes, or cash-handling errors — yet all the flexibility of cash payments.
Digital receipts and clear transaction trails simplify accounting for GST and tax purposes.
Remember how UPI was slow to take off before COVID — and then suddenly exploded into daily use?
The eRupees could follow the same path:
RBI is also exploring programmable eRupees — for example, a digital rupee token that can only be used for a specific subsidy or purpose. That’s huge for supply chains and MSME grants.
Even though eRupees is still expanding, small business owners can prepare early:
Like any new system, eRupees adoption will face challenges:
But once these hurdles pass, the ecosystem effect could be huge — especially when fintech players like CRED, Amazon, and Google join the RBI’s eRupee project.
The eRupees is not just another payment app — it’s the foundation for India’s next digital economy layer.
For MSMEs, it means:
Just as UPI revolutionized payments, eRupees may revolutionize money itself.
Q1. What is eRupees?
The eRupees (e₹) is India’s RBI-issued digital currency — a legal tender in electronic form that can be stored in wallets and used just like cash.
Q2. Is eRupees different from UPI?
Yes. UPI transfers money between bank accounts. eRupee is the money itself, issued digitally by the RBI and stored in wallets.
Q3. Which banks have launched eRupee wallets?
Banks like SBI, ICICI, HDFC, YES Bank, IDFC First, Kotak, Bank of Baroda, and others have launched or are piloting eRupee wallet apps.
Q4. Can I use eRupees without internet?
Offline transactions are being tested by RBI. In the future, eRupee will work even in areas with no internet connectivity.
Q5. How can small businesses accept eRupee?
By downloading their bank’s eRupee app, setting up a merchant wallet, and displaying an eRupee QR code for customers.
Q6. Is eRupee safe?
Yes. Since it’s backed by RBI, it carries sovereign guarantee — just like physical cash.
Q7. How is eRupee useful for MSMEs?
It enables instant payments, reduces transaction costs, improves transparency, and can work offline — making it ideal for small traders and local businesses.
India’s eRupee is not just another fintech trend — it’s the next level of our digital payment infrastructure after UPI.
For MSMEs, it’s a chance to be part of India’s digital-cash revolution early.
Because just like UPI once did, eRupee will soon become the default way to pay and get paid.
If you run an MSME or small business in India, you already know that customers…
Local advertising has become the growth engine for MSMEs and small businesses across India. Most…
If you run a small business in an Indian town, you already know this truth:…
Entrepreneurship in India is emotional.People start with excitement, inspiration, even pride…But many end their journey…
Small town entrepreneur success stories are redefining India’s business landscape. With affordable smartphones, UPI, e-commerce…
For many Indian MSMEs and small businesses, unexpected expenses are common. A supplier needs immediate…