India's digital rupee aims to boost financial inclusion by providing accessible, low-cost digital payments to millions, especially in underserved rural areas. By leveraging mobile technology, it enables seamless transactions without traditional banking infrastructure, empowering the unbanked. However, its centralized design raises surveillance risks. The Reserve Bank of India can track transactions, potentially compromising user privacy. Balancing these goals requires robust encryption, anonymization protocols, and strict data governance to protect users while maintaining oversight to curb fraud and money laundering. Transparent policies and independent audits are crucial to ensure the digital rupee fosters inclusion without enabling overreach. Striking this balance will determine whether it becomes a model for inclusive digital finance or a tool for excessive control.