With the goal of transforming the financial sector, India's digital rupee popularly known as central bank digital currency or CBDC intends to increase financial inclusion, improve transparency, and streamline payments. The improvement of the effectiveness and security of the nation's financial transactions is the main objective of CBDC. It offers cheap operating and issuance costs in addition to other advantages to meet the needs of all types of rupee users. This study delves into the origins of CBDC in India with special reference to three models of its issuance and management. Inferences drawn are empirical in nature and suggestive of the fact that an Indirect model of issuance is best suitable for India at this juncture of its potential design. Iterative design of technology and extensive stakeholder interaction are needed in the absence of a well-established prototype model for adoption. In light of this, the article examines the Chinese digital yuan case for policy recommendations as well as potential needs for an Indian-adoptable technology platform. Although the study outlines the purpose of CBDC and its anticipated benefits, it also highlights how CBDC may affect monetary policy and liquidity management, making it just as appealing as cash. The study indicates that in order to guarantee the sorting out of various models and designs of CBDC introduction in India, extensive preparation in terms of cost, time, and opportunity tapping is necessary. The conclusions gained from this study serve as a helpful tool towards attaining the same.