User Awareness and Perception of Central Bank Digital Currency (CBDC) in India: Implications for Future Payment Systems and Digital Financial Inclusion

Abstract

The rapid development of Central Bank Digital Currencies (CBDCs) has transformed the debate surrounding the evaluation
and transformation of money, payment systems and digital financial inclusion. Although India has established a substantial
digital-payment ecosystem and introduced the Digital Rupee, evidence concerning users’ awareness, perception and
intention to use CBDC at the regional level remains limited. This study examines the levels of CBDC awareness, perception
and intention to use among users in five districts of Tamilnadu, India. The study adopted a quantitative research design
incorporating descriptive and analytical methods with primary data collected through a structured questionnaire. Of the 250
questionnaires distributed, following data screening, 210 valid responses were retained for subsequent analysis, yielding an
84% usable response rate. CBDC awareness and perception were measured using 20-item five-point scales, the intention to
use construct was measured using two items. Descriptive statistics, chi-square tests, independent-samples t-tests, one-way
ANOVA, correlation, Factor analysis and regression analysis were employed at the 5% significance level. The findings
indicate low overall CBDC awareness (M = 2.09, SD = 0.63), compared with moderate perception (M = 2.35, SD = 0.68)
and intention to use (M = 2.54, SD = 0.89). Approximately 63.3% of respondents demonstrated low awareness, while 52.4%
reported low perception. The analysis revealed no statistically significant differences in awareness or perception across
demographic groups. The measurement scales demonstrated excellent reliability and factorability. Awareness was
positively associated with perception, (r = .398, p < .001) and intention (r = .368, p < .001), while perception showed the
strongest relationship with intention (r = .495, p < .001). Regression results further demonstrated that awareness
significantly predicted perception (β = .414, p < .001), while awareness and perception jointly explained 28.0% of the
variance in intention to use. The study establishes awareness → perception → intention as an empirically supported
behavioural pathway and highlights the need for user-centred CBDC education, trust-building, privacy assurance and
practical engagement strategies to strengthen India's Digital Rupee adoption.