This paper provides a complete overview to readers about the topic of Central Bank Digital Currencies (CBDC). And gives idea about that introduction of CBDC would affect the country economy, banking sector, financial stability, Privacy of citizens or users and monetary policy in a developing nation India. In this paper, I have mentioned about CBDC Indian centralized E-rupee and right here I have complete analysed examine approximately that Indian E-Rupee whole operating characteristics and features, studied approximately its benefit and risk. Following Points giving idea about and the reasons why a Central Bank (CB) may want to introduce a CBDC. The vast majority of countries central banks are exploring CBDC (Digital Currency) Nowadays between countries and people debate is being Popularise about CBDC benefits and risk. In the chance of Many Central banks issuing digital Currency (CBDC) straight away raises the query of how this new form of money ought to co-exist and engage with existing sorts of money. Will it be capable of compete with already existing online payments Tool? According to this research paper government has launched Digital currency because government intends to reduce the extent use of Cryptocurrency in an economy. This is the completely illusion that CBDC is a Game changer in Payment sector. When the country fails to outlaw crypto currency, questioned if we can't defeat them, should we join them? In this paper it is determined that the economy will experience inflation as a result of the introduction of the CBDC using the Fisher Quantity Theory of Money. Further, more use of CBDC may affect financial stability through influencing monetary policy. Additionally, the government is restricting the cash transfer, holding of cash Limited UPI payments in order to strengthen the CBDC and safeguard the Monopoly of central bank currency. Digital e-rupee is having less pros and more cons. The introduction of the CBDC may give the impression that the Government does not only want to monopolize centralized currency is now trying to monopolize medium of exchange of centralised currency also. With Despite ongoing research and sporadic pilots, Central Banks have been reluctant to make a CBDC available to the general public. Would it be advantageous?