Yes, you can transfer Digital Rupee (e₹) to another person, provided both users are using supported e₹ wallets and the required payment functionality is available.
India’s Digital Rupee is a Central Bank Digital Currency (CBDC) issued by the Reserve Bank of India (RBI). Unlike UPI, which is a payment system used to move money between bank accounts, e₹ is itself a digital form of the Indian rupee and can be stored in an e₹ wallet.
According to the RBI’s Digital Rupee FAQ, updated April 29, 2026, e₹ wallets support person-to-person (P2P) as well as person-to-merchant (P2M) payments. For P2P payments made through a CBDC QR, the transaction happens between two e₹ wallets and is settled without passing through the users’ bank accounts.
What Is a Digital Rupee Transfer?
A Digital Rupee transfer means sending e₹ from your Digital Rupee wallet to another supported e₹ wallet.
It is similar in concept to handing physical cash to another person, except the value is held digitally in the wallets.
For example:
Your e₹ wallet → P2P Digital Rupee payment → Another person’s e₹ wallet
The recipient receives the Digital Rupee in their wallet instead of receiving a credit directly into their regular bank account.
The RBI describes e₹ as a digital form of the physical rupee that can be stored in a wallet and used to send or receive money.
How Does Person-to-Person Digital Rupee Payment Work?
The exact steps depend on the e₹ wallet provider, but the basic process is straightforward.
A typical transaction can work like this:
- Open your Digital Rupee or e₹ wallet.
- Select the option to make a payment or send money.
- Enter the recipient’s required payment details or use the supported QR option.
- Enter the amount.
- Check the recipient and payment details.
- Authorize the transaction using the method required by your wallet.
- The e₹ is transferred to the recipient’s supported wallet.
The precise interface can differ between banks and non-bank wallet providers. The RBI advises users to follow the instructions provided by the institution offering their e₹ wallet.
Does the Recipient Need a Digital Rupee Wallet?
For a Digital Rupee P2P wallet-to-wallet payment, the recipient needs a supported e₹ wallet.
This is different from a normal UPI payment, where money is transferred between bank accounts using the UPI system.
The RBI specifically states that e₹ can be transacted through e₹ wallets for person-to-person and person-to-merchant transactions.
Therefore, simply having a normal bank account or UPI ID does not mean that a person automatically has an e₹ wallet.
What Is the Difference Between UPI ID and UPI Number?
Does the Digital Rupee Go Directly to the Bank Account?
Not when you make a standard wallet-to-wallet P2P payment through the CBDC system.
The RBI says that P2P and P2M payments made at a CBDC QR happen between two e₹ wallets and are settled instantaneously without passing through the users’ bank accounts.
This is one of the important differences between Digital Rupee and conventional digital bank payments.
The Digital Rupee can also be moved between your bank account and your e₹ wallet. The RBI says e₹ can be loaded into or redeemed from the wallet through the linked bank account 24 hours a day, seven days a week.
Digital Rupee vs UPI: What’s the Difference?
Digital Rupee and UPI are related to digital payments, but they are not the same thing.
| Feature | Digital Rupee | UPI |
|---|---|---|
| What is it? | Digital form of the rupee | Payment system |
| Where is value stored? | e₹ wallet | Usually bank account |
| P2P payments | Yes | Yes |
| Merchant payments | Yes | Yes |
| Issued by | RBI | UPI operated by NPCI |
| Can be stored separately from bank balance? | Yes | UPI itself does not store money |
| CBDC wallet required for e₹ P2P? | Yes | No separate CBDC wallet |
The RBI explains the distinction simply: e₹ is a digital form of ₹, while UPI is a means of payment.
Can You Send Digital Rupee Using a UPI QR Code?
There is an important distinction here.
The RBI says that e₹ apps can use UPI QR codes for P2P and P2M payments. However, when an e₹ user scans a UPI QR, the settlement follows UPI settlement timelines.
By contrast, when the payment is made through a CBDC QR, the transaction occurs between e₹ wallets.
So, seeing a UPI QR does not necessarily mean that the transaction is being settled in exactly the same way as a CBDC wallet-to-wallet payment.
Can You Send Digital Rupee to a Friend?
Yes, if the relevant e₹ wallet functionality supports the transaction.
For example, imagine you have ₹500 in your e₹ wallet and want to give ₹100 to a friend who also has a supported e₹ wallet.
You can initiate a P2P Digital Rupee payment of ₹100.
After the successful transaction:
Your wallet: ₹500 → ₹400
Friend’s wallet: increases by ₹100
The payment is a transfer of Digital Rupee rather than a traditional bank-account transfer.
Can You Receive Digital Rupee From Another Person?
Yes.
Because e₹ supports P2P payments, another user can send Digital Rupee to your supported e₹ wallet.
Once the transaction is completed, the Digital Rupee becomes part of the balance available in your wallet.
The RBI describes e₹ as something that users can receive and send, similar to how physical currency can be exchanged.
Can You Transfer Digital Rupee 24/7?
The RBI states that e₹ can be loaded, redeemed or transferred to and from the user’s bank account 24×7.
For actual wallet-to-wallet payments, availability can also depend on the supported wallet, system and payment functionality being used.
Digital Rupee is designed to provide cash-like characteristics, including availability outside traditional banking hours.
Are There Any Charges for Digital Rupee Transfers?
The RBI’s current Digital Rupee FAQ states that there are no charges or fees associated with using e₹ or e₹ wallets.
However, users should still check the terms of their particular wallet provider because services and policies can change.
Can Digital Rupee Be Used for Merchant Payments?
Yes.
Digital Rupee supports both:
- P2P: Person-to-person payments
- P2M: Person-to-merchant payments
The RBI says merchants can receive e₹ payments through CBDC QR codes, and e₹ apps can also support payments through UPI QR codes.
For example, you could use Digital Rupee to pay a participating shop, restaurant or other merchant.
Can You Transfer Digital Rupee Back to Your Bank Account?
Yes.
The RBI says e₹ can be redeemed from the e₹ wallet to the user’s bank account.
This gives users a way to move value between their bank account and Digital Rupee wallet.
A simplified flow looks like this:
Bank account → e₹ wallet → another e₹ wallet
or:
Bank account → e₹ wallet → bank account
The exact steps depend on the wallet provider.
Is Digital Rupee the Same as Cryptocurrency?
No.
Digital Rupee and cryptocurrency are fundamentally different.
Digital Rupee is India’s central bank digital currency and is issued by the Reserve Bank of India. It represents the digital form of India’s sovereign currency.
Cryptocurrencies such as Bitcoin operate through different systems and are not the same as RBI-issued Digital Rupee.
Is Digital Rupee the Same as Money in a Bank Account?
Not exactly.
The RBI describes e₹ as a digital form of the rupee and says it can be stored separately in an e₹ wallet. This is one reason the RBI distinguishes e₹ from UPI, which is a payment method.
A simple way to understand it is:
Bank account balance: Money recorded in your bank account.
Digital Rupee balance: e₹ held in your Digital Rupee wallet.
Both represent rupee value, but they operate through different systems.
Does a Digital Rupee Transfer Need UPI?
Not necessarily.
A Digital Rupee P2P transaction using a CBDC QR can occur between two e₹ wallets without passing through the users’ bank accounts.
However, the RBI has also enabled functionality for e₹ apps to scan UPI QR codes. When that route is used, settlement follows UPI timelines.
This is why it is useful to distinguish Digital Rupee as the digital currency from UPI as a payment system.
Is Digital Rupee Available to Everyone?
The RBI’s current FAQ says that e₹ is still being pilot tested and that users and merchants of identified pilot banks and non-banks can use e₹.
The availability of an e₹ wallet therefore depends on the participating institutions and their supported services.
The RBI’s April 29, 2026 FAQ lists banks offering CBDC wallets, including SBI, ICICI Bank, HDFC Bank, Axis Bank, Canara Bank, Federal Bank, PNB and others.
What Happens If a Digital Rupee Payment Has a Problem?
If you have a problem with an e₹ transaction, the RBI says users can raise disputes through their e₹ wallet app or contact the wallet provider’s customer-care centre.
Before reporting a problem, it is useful to check:
- Transaction status
- Amount
- Recipient details
- Wallet balance
- Transaction history
- Whether the recipient received the payment
Avoid making a second payment immediately if you are unsure whether the first transaction was completed.
Bottom Line
Yes, you can transfer Digital Rupee to another person.
The RBI’s current Digital Rupee framework supports person-to-person payments between e₹ wallets. When a P2P payment is made through a CBDC QR, the transaction takes place between the two e₹ wallets and is settled without passing through the users’ bank accounts.
Digital Rupee is different from UPI: e₹ is the digital form of the rupee, while UPI is a payment system. e₹ can also be loaded from and redeemed to a bank account, while e₹ apps can support payments using both CBDC QR codes and UPI QR codes.
Disclaimer
This article is for general informational and educational purposes only. Digital Rupee features, participating institutions, wallet functionality, transaction processes and availability may change as the RBI’s CBDC programme develops. The article does not provide financial advice. Users should check their bank or e₹ wallet provider for the latest transaction instructions, limits, charges and support procedures.
