In simple terms, tokenised deposits<\/b> are digital versions of the money you already hold in your bank account. Instead of being stored as an entry in a bank\u2019s database, your funds are converted into digital tokens<\/b> issued by your bank, fully backed by traditional deposits.<\/p>\n
Under rbi tokenised deposit framework<\/a>, these tokens can be transferred or settled instantly across banks, apps, or merchants using blockchain or distributed ledger infrastructure. Unlike cryptocurrencies, they are regulated by RBI<\/b> and represent real, redeemable rupees \u2014 not speculative assets.<\/p>\n Think of tokenised deposits as your bank balance with a digital body. They combine the trust of deposits with the speed and programmability of digital tokens \u2014 allowing banks to build new features like instant cross-bank settlements and programmable payments.<\/p>\n <\/p>\n Insight:<\/b> Tokenised deposits are still your bank money \u2014 just wrapped in faster, programmable technology.<\/p>\n <\/i><\/p>\n Many users confuse tokenised deposits with wallet balances. But they are fundamentally different in structure, safety, and use cases. Under wallet regulation guidelines<\/a>, wallets like Paytm or PhonePe Prepaid Wallets are managed by non-banking entities under RBI\u2019s Prepaid Payment Instrument (PPI) rules. Tokenised deposits, on the other hand, are bank liabilities<\/b> \u2014 not prepaid funds.<\/p>\n Here\u2019s how they differ:<\/b><\/p>\n In short, wallet money is prepaid and stored, while tokenised deposits are on-ledger bank deposits<\/b> \u2014 traceable, interest-bearing, and interoperable.<\/p>\n <\/p>\n Tip:<\/b> Wallets are like prepaid cards \u2014 tokenised deposits are like your savings account going digital.<\/p>\n <\/i><\/p>\nHow They Differ from Wallet Balances<\/b><\/h2>\n
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\n Feature<\/th>\n Tokenised Deposits<\/th>\n Wallet Balances<\/th>\n<\/tr>\n \n Issuer<\/td>\n Banks regulated by RBI<\/td>\n Payment companies or fintechs<\/td>\n<\/tr>\n \n Regulation<\/td>\n Banking Act & RBI deposit norms<\/td>\n Prepaid Payment Instruments (PPI)<\/td>\n<\/tr>\n \n Backing<\/td>\n Fully backed by deposits<\/td>\n Backed by escrow balances<\/td>\n<\/tr>\n \n Interest<\/td>\n Earns regular savings interest<\/td>\n No interest on wallet funds<\/td>\n<\/tr>\n \n Usage<\/td>\n Cross-bank and programmable<\/td>\n Limited to in-app or partner merchants<\/td>\n<\/tr>\n \n Safety<\/td>\n Bank guarantee<\/td>\n Non-bank escrow<\/td>\n<\/tr>\n<\/table>\n Why RBI and Banks Are Exploring Them<\/b><\/h2>\n