In a significant milestone for India's central bank digital currency (CBDC), the e-rupee surpassed one million transactions in a single day on December 27, 2023. However, this achievement was partly driven by banks depositing employee salaries and benefits into CBDC wallets, raising questions about organic adoption.

• One Million Transactions: The e-rupee crossed the one million daily transaction mark for the first time, exceeding the RBI's original target for the end of 2023.
• Banks Play a Role: Several government and private banks, including HDFC, Kotak Mahindra, and Axis, deposited employee salaries and benefits into CBDC wallets, contributing significantly to the milestone.
• Employee Concerns: Some bank employee unions expressed concerns about being forced to use the CBDC, while others saw it as a natural progression in offering digital financial services.

Banks Drive Milestone: While the one million transaction milestone is a positive step for the e-rupee, reports indicate that banks played a significant role in achieving it. Several financial institutions deposited employee salaries and benefits into CBDC wallets, inflating the transaction volume. This raises questions about the organic adoption of the e-rupee among users.

Challenges Remain: Despite the milestone, the e-rupee faces challenges in competing with India's already popular cashless payment system, Unified Payments Interface (UPI). The RBI is exploring ways to incentivize e-rupee usage and increase its appeal to consumers.

Employee Reactions: The bank-driven approach to boosting e-rupee transactions has drawn mixed reactions from employee unions. Some, like the All India Union Bank Employees Federation, view it as forced adoption and a violation of employee choice. Others, like the All India Union Bank Employees Association, see it as a natural extension of offering digital financial services and a way to familiarize employees with the technology.

The Road Ahead: The e-rupee's long-term success will depend on its ability to attract organic user adoption beyond bank-driven initiatives. The RBI needs to develop strategies to make the e-rupee competitive with existing payment systems and address concerns about forced usage to ensure its sustainable growth.