Antecedents of behavioural intention to adopt central bank digital currency (e₹): examining the user acceptance of digital innovation in India

Abstract

The main objective of this research is to examine the elements that influence users' behavioural intention to use and adopt the digital rupee (e₹). It is grounded in an improved version of the unified theory of acceptance and use of technology (UTAUT), which integrates the theory of planned behaviour. This model investigates how perceived security, perceived trust, performance expectancy and effort expectancy impact attitude with regard to technology use, which in turn affects behavioural intent. Partial least squares structural equation modelling with bootstrapped assessment of indirect effects was used to collect data from 268 digitally active consumers in five Reserve Bank of India pilot cities (Mumbai, New Delhi, Bengaluru, Bhubaneswar and Chandigarh). Performance expectancy, effort expectancy and perceived trust significantly shaped attitude, which strongly predicted behavioural intention, whereas perceived security had no significant effect. The result of the three significant determinants on intention was mediated significantly by attitude, which appeared as the linking mechanism between beliefs and intention. The model was a good explanation and prediction. The research work extends UTAUT by reinstating attitude as the mediating factor shaping intention toward a sovereign digital currency and offers early empirical evidence on central bank digital currency adoption from India's pilot cities. It provides policymakers and financial institutions with practical guidance for designing trust-based, value-driven strategies that support wider adoption of the digital currency in India.