| Abstract | 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.
Key Words: Central Bank Digital Currency, cyber-security, RBI,
Digitalization
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