Add Your Heading Text Here

Abstract

India’s digital payment ecosystem has undergone a profound transformation with the emergence of the Central Bank Digital Currency (CBDC) or the Digital Rupee (e₹), alongside platforms such as UPI and mobile wallets. This shift has enhanced transactional speed, accessibility, and financial inclusion. However, the rapid digitalization of financial services has simultaneously increased risks related to fraud, data misuse, privacy breaches, technological failures, and user vulnerability. Ensuring robust consumer protection is therefore central to maintaining trust and facilitating the sustainable adoption of digital currencies. This paper examines the consumer protection landscape in India, focusing on regulatory instruments such as the Digital Personal Data Protection Act (2023), RBI guidelines, cybersecurity protocols, and the RBI Ombudsman Scheme. Key challenges including fragmented grievance mechanisms, low public awareness, privacy concerns, and insufficient safeguards for lowvalue users are highlighted. Drawing from global best practices and India’s evolving CBDC experience; the study proposes a strengthened consumer protection framework emphasizing transparency, cyber resilience, streamlined grievance redressal, and enhanced digital literacy.

The paper concludes that a user-centric approach is essential for ensuring safe, inclusive, and sustainable digital currency adoption in India.