# India digital rupee and tokenized bond pilot expansion > Live situation record from CLSTR: https://clstr.news/situations/india-digital-rupee-pilot-expansion > Updated: 2026-09-11T10:14:23.000Z. Sources: 21. Developments: 5. The Reserve Bank of India (RBI) is expanding the scope and utility of its Central Bank Digital Currency (CBDC) pilot program. Initially focused on retail expansion, the program grew to include the territories of Chandigarh and Dadra and Nagar Haveli. This phase of the pilot emphasizes the use of the digital rupee (e₹-R) for direct-benefit transfers, utilizing programmable features to ensure welfare funds are used for specific purposes, such as purchasing foodgrains, to reduce corruption. The initiative has also moved into the corporate sector through a collaboration with the Securities and Exchange Board of India (SEBI). Unveiled at the Global Fintech Fest 2026, the ‘Demat 2.0’ project utilizes distributed ledger technology (DLT) and the RBI’s wholesale CBDC to facilitate atomic settlement, allowing for the simultaneous transfer of securities and funds to reduce counterparty risks. Smart contracts are employed to automate asset servicing, including redemptions and interest payments. In the initial phase of the Demat 2.0 pilot, three companies successfully issued tokenized corporate bonds totaling ₹1,025 crore. This included REC Limited raising ₹500 crore, Larsen & Toubro raising ₹500 crore, and IIFL Finance completing a ₹25 crore issuance. These transactions achieved same-day settlement. SEBI Chairman Tuhin Kanta Pandey noted that Demat 2.0 is a “technological upgrade for existing corporate bonds rather than the creation of a new asset class.” At the Global Fintech Fest in Mumbai, Union Finance Minister Nirmala Sitharaman urged the RBI to further enhance both wholesale and retail CBDC capabilities. Highlighting the importance of tokenisation in an evolving global financial system, she cited the REC Limited pilot as a successful demonstration of how tokenisation and the digital rupee can enable near-instantaneous settlement. ## Claims - REC Limited raised ₹500 crore through the first pilot issuance of tokenized corporate bonds. (disputed by 3 sources) - Larsen & Toubro raised ₹500 crore through the tokenized bond pilot. (disputed by 2 sources) - SEBI and the RBI launched the Demat 2.0 pilot to use blockchain technology for issuing and settling tokenized corporate bonds. (corroborated by 6 sources) - The pilot uses the RBI’s wholesale central bank digital currency (CBDC) to enable atomic settlement of bonds. (corroborated by 6 sources) - India plans to launch its first tokenized corporate bonds in September. (corroborated by 3 sources) - REC, a state-owned power financier, is expected to be the first issuer. (corroborated by 3 sources) - The bond issuance is expected to be worth less than 5 billion rupees (approximately $57 million). (corroborated by 3 sources) - Investors will require both a wholesale CBDC wallet and a DEMAT 2.0 securities wallet. (corroborated by 3 sources) - The bonds will feature an initial three-month mandatory holding period. (corroborated by 3 sources) - Indian exchanges aim to establish a secondary market for tokenized bonds by December. (corroborated by 3 sources) - Demat 2.0 utilizes distributed ledger technology (DLT) for existing corporate bonds rather than creating a new asset class. (corroborated by 3 sources) ## Timeline ### 2026-09-11: Nirmala Sitharaman urges RBI to enhance digital rupee capabilities Finance Minister Nirmala Sitharaman urged the RBI to strengthen digital rupee capabilities and highlighted the success of India’s first tokenised corporate bond pilot in Mumbai. 5 sources. https://clstr.news/cluster/nirmala-sitharaman-urges-rbi-to-enhance-digital-rupee-capabilities ### 2026-09-09: India launches Demat 2.0 pilot for tokenized bond settlement SEBI and the RBI have launched the Demat 2.0 pilot in India, using blockchain and digital rupees to enable the atomic settlement of tokenized corporate bonds. 10 sources. https://clstr.news/cluster/rec-limited-launches-indias-first-tokenised-bond-pilot ### 2026-08-27: India to pilot tokenized bond issuance using wholesale CBDC India plans to pilot its first tokenized corporate bond issuance via REC, using wholesale CBDC and distributed ledger technology for near-instant settlement. 2 sources. https://clstr.news/cluster/india-to-pilot-tokenized-bond-issuance-using-wholesale-cbdc ### 2026-08-24: India to launch first tokenized corporate bonds using digital rupee India plans to launch its first tokenized corporate bond pilot in September, using the digital rupee and blockchain technology to settle transactions for state-owned REC. 7 sources. https://clstr.news/cluster/india-to-launch-first-tokenized-corporate-bonds-using-digital-rupee ### 2026-08-14: Reserve Bank of India expands digital rupee pilot The Reserve Bank of India is expanding its digital rupee pilot to Chandigarh and Dadra and Nagar Haveli to facilitate programmable, traceable welfare payments and reduce subsidy leakages. 4 sources. https://clstr.news/cluster/reserve-bank-of-india-expands-digital-rupee-pilot --- Cite as: India digital rupee and tokenized bond pilot expansion. CLSTR, https://clstr.news/situations/india-digital-rupee-pilot-expansion