Money is a typical means of transaction that acts as a middleman between a buyer and a seller. Currency is the term for funds issued by the government that serve as the nation's legal tender. As times change, so too does the nature of currency. Through time, the means of transaction have changed, moving from the barter system to the digital currency period of today. A nation's central bank regulates the amount of money available for use in its economy. The Central Bank of India, or RBI, issues Central Bank Digital Currency (CBDC), a digital currency that replaces conventional money. With the advent of digital currencies, the world's financial system has evolved and now offers new avenues for trade, investment, and economic expansion. With the adoption and regulation of digital currencies presenting both potential and challenges, India has become a prominent player in the market in recent years. This chapter investigates the complex world of digital money in the context of India by examining its history, present state, legal framework, implications, difficulties, and risks.