Central Bank Digital Currency (CBDC) & Privacy: The Legal Status Of The E-Rupi And The Conflict Between “Programmable Money” And Constitutional Privacy Rights In India
- IJLLR Journal
- Jul 19
- 1 min read
Gunda Dinesh, Alliance School of Law, Alliance University
ABSTRACT
This paper focuses on CBDC E-Rupi often referred as digital currency. E-Rupi is India’s official legal tender currency launched by RBI and it can be used for everyday transactions. The main question is whether the E-Rupi can be considered as programmable money and It’s legal status and conflict with the fundamental right to privacy under Article 21 of the Indian Constitution. This paper uses doctrinal legal research approach it examines primary legal sources, including the RBI Concept Note on CBDC (2022), the Finance Bill 2022 amendments to the Reserve Bank of India Act, 1934 (expanding “bank note” to digital form), the Digital Personal Data Protection Act, 2023, and constitutional jurisprudence. It integrates policy and governance analysis from global CBDC literature. The key findings of the paper includes clear legal status as legal tender of E-Rupi, backed by the RBI’s balance sheet and statutory recognition, positioning it as sovereign money equivalent to physical cash while enabling direct, intermediary-free transfers. While the e-Rupee strengthens monetary sovereignty and financial inclusion, its programmable features risk transforming money from a tool of individual freedom into an instrument of state control, undermining the right to privacy and democratic trust.
Keywords: (Central Bank Digital Currency) CBDC, E-Rupi, Programmable money, Article 21, Digital money, Constitution, Homomorphic encryption.
