The RBI does not want to find itself in a situation where it does something without really understanding the likely impact or still wishes to be in a position where it can handle the fallout, Sankar said.
He said 50,000 users and 5,000 merchants are currently transacting through eight banks, and another five lenders are expected to join them soon.
The pilot launched on December 1 has seen 7.70 lakh transactions and is currently being implemented in five cities, he said.
There are plans to add nine more cities to the list, Sankar said, reiterating that the same will happen gradually.
India is one of the few countries among the 100 countries considering introducing digital versions of fiat currencies called CBDCs.
Prior to the retail CBDC, the RBI launched the wholesale CBDC pilot last year.