Impact of Digital Currencies on the Indian Economy: A Case Study of the e-RUPI

The growing presence and importance of digital currencies and their economic implications has become a hot topic of global debate. This research explores the potential impact of digital currencies on the Indian economy. It focuses on the recently launched Central Bank Digital Currency (CBDC), the e-RUPI, as a case study. In summary, the e-RUPI is remarkably similar to a prepaid voucher that can be redeemed without the use of internet, cards, or any other banking services. Employing an examination of current literature, assessments of policies, and observations of consumer behaviour, this study aims to explore the potential advantages and challenges associated with the integration of e-RUPI into the Indian financial system. The findings aim to provide an insightful perspective on the e-RUPI's contribution to India's economic growth and transformation, whether positive – promoting financial inclusion and decreasing financial crime like money laundering or corruption – or negative – need for technological advancements and cybersecurity risks. The paper concludes by outlining policy recommendations for leveraging the e-RUPI's potential while mitigating associated risks, ultimately paving the way for a robust and inclusive digital economy in India.