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With the CBDC retail sandbox, fintech players can access APIs, build prototypes, and test products in a secure, simulated environment

Fintechs can either join the sandbox directly or through their partner banks. The RBI said that the move will encourage faster experimentation and reduce operational risks for participants

The RBI is also developing Unified Markets Interface (UMI) to enable tokenisation of financial assets and settlements using wholesale CBDC.

The RBI has launched a CBDC retail sandbox to open up access to digital rupee for fintech players and startups.

Until now, only a few pilot banks could test the CBDC through closed systems. With the retail sandbox, fintech players can now access APIs, build prototypes, and test products in a secure, simulated environment.

“The CBDC retail sandbox will give innovators the space to experiment and build on top of the digital rupee,” RBI governor Sanjay Malhotra said while announcing the launch at the Global Fintech Fest 2025. “It will help create new use cases, improve customer experience, and add value to ongoing pilots.”

Fintechs can either join the sandbox directly or through their partner banks. The RBI said that the move will encourage faster experimentation and reduce operational risks for participants.

Digital Rupee (e₹) or the central bank digital currency (CBDC) is issued by the RBI. It offers features similar to physical cash like convenience of use, guarantee of the RBI, finality of settlement, among others.

To further promote the usage of CBDC, the central bank is also developing a new financial market infrastructure called the Unified Markets Interface (UMI) to enable tokenisation of financial assets and settlements using wholesale CBDC.

The governor said that the UMI will allow tokenisation of financial assets and make settlements more transparent and efficient through smart contracts. Early pilot results, he said, have been encouraging.

(The story will be updated soon)