What does e-rupee mean for students and education?
One of the important applications of digital currency in the education sector is the PM-Vidyalaxmi scheme, launched by the Union government in November 2024. The scheme aims to provide financial support to students pursuing higher education through education loans and interest subsidies. Under the scheme, eligible students with an annual family income of up to Rs 8 lakh can receive a 3 per cent interest subsidy on education loans of up to Rs 10 lakh, subject to the prescribed conditions.
The interest subsidy is transferred through an e-voucher or programmable CBDC wallet. Once the subsidy is credited to the student’s digital wallet, the student can opt to redeem it. The amount is then transferred directly to the education loan account through Direct Benefit Transfer (DBT).
According to the Ministry of Education, 1,12,817 collateral-free and guarantor-free education loans had been sanctioned under PM-Vidyalaxmi as of July 21, 2026, with the total sanctioned amount standing at Rs 15,634.78 crore. However, this figure represents education loans sanctioned under the scheme, not the number of students who received CBDC-based interest subsidies.
The technology could also be explored for other education-related benefits, such as scholarships, research grants and student assistance programmes. However, these should be seen as possible future applications rather than existing nationwide services.
As digital financial systems evolve, students will also need to understand how digital currency works, how it differs from ordinary digital payments and how to use financial technology safely.
