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Module: General Practice

Q98: In the context of the "Programmability" pilot for Retail CBDC (e₹-R) launched in 2024-2025, which of the following use cases was successfully tested in states like Gujarat and Andhra Pradesh?

A
Auto-debiting of income tax directly from the salary wallet.
B
Purpose-bound transfers where funds provided to farmers could strictly be used only for purchasing agricultural inputs (fertilizers/seeds).
C
Automatic conversion of e₹ to US Dollars for travel bookings.
D
Creating interest-bearing Fixed Deposits directly within the CBDC wallet.
✅ Correct Answer: B
🎯 Quick Answer:
Programmability was tested for "Agri-input" subsidies.
Concept Definition: Programmability (often called "Smart Money") allows the issuer to set rules on how the currency can be spent.
Context (2025 Pilots): Use Case: The RBI, in collaboration with state governments (e.g., for schemes like Odisha's Subhadra Yojana or Gujarat's G-SAFAL), tested "Purpose-Specific" money.
Mechanism: Farmers received e₹ subsidies that were digitally "locked" to be spendable only at registered fertilizer depots.
They could not withdraw it as cash or spend it on other goods.
This ensures 100% end-use monitoring of public funds.
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