“That being said, while we are working on introducing a digital version of the fiat currency, the Reserve Bank is also assessing the financial stability implications of introducing such a Central Bank Digital Currency (CBDC).”
The RBI stated that it was working on CBDCs but expressed a cautious tone stating – ” not many practical instances of operationalisation.”
CBDC is expressed in Monetary Policy. That policy lists several concerns about disintermediation and AML issues –
“IV.77 CBDC is, however, not an unmixed blessing – it poses a risk of disintermediation of the banking system, more so if the commercial banking system is perceived to be fragile.”
Digital payments are used in India, eg via PayTM which had reported 39 million daily active users.