Mumbai, Sept 28: State-owned Bank of India (BOI) has launched a User-Level Programmable CBDC and Auto Issuance which lets a user schedule automatic issuance of digital rupee (e₹) to a beneficiary’s wallet, at a set amount and frequency, while defining the purpose the funds can be used for.
It is built in line with Reserve Bank of India (RBI) and National Payments Corporation of India (NPCI) guidelines.
A user, instead of authorizing the same transfer by hand every month, configures it once. The system handles the recurrence, and the funds carry their intended use with them.
A parent supporting a child studying in another city can replace the manual monthly transfer with a standing instruction: a fixed sum, credited to the child’s e₹ wallet on the same date each month, spendable on tuition, meals and the other education expenses the parent approved in advance.
Key capabilities
- User-level programmability of the digital rupee, configurable by the account holder rather than the issuing bank.
- Auto Issuance of a predefined amount to a beneficiary’s CBDC wallet at a set frequency — no manual initiation required.
- Purpose-based usage controls, so recipients spend within the parameters the sender defines.
- Full automation of recurring payments without the sender giving up oversight of how the funds are used.
- Built-in support for allowances, education expenses and other recurring, purpose-bound payments.
“User-level programmability gives customers greater flexibility and control over recurring payments. Auto Issuance further simplifies the experience by removing the need to manually initiate the same payment every month,” said Ashutosh Mishra, General Manager & CTO, Bank of India.
“This marks another important step in Bank of India’s digital rupee journey, implemented in collaboration with Montran India,” he said.
“Programmability turns the digital rupee from a payment instrument into a policy tool,” said Julie Esca, Chief Executive Officer of Montran India, the company which has built the platform.
“Bank of India can now issue e₹ automatically and attach real usage conditions to it. That is a meaningfully different capability than a wallet-to-wallet transfer, and it points to where CBDC is headed in India,” she said.
It is a programmable, purpose-bound instrument that fits how Indian households already move money for school fees, allowances and recurring family expenses. (NVI)
