The production of coalbed methane is increasing rapidly in Raniganj coalfield of India. The present statistics of methane gas production and produced water is about 1.7 mmscmd (million metric standard cubic meter per day) and 12160 m3/day respectively from 560 CBM wells. The major concerns are challenges related to CBM produced water treatment, it's handling, uses for various purposes and its proper disposal is yet to be resolved, considering physico-chemical parameters, socio-economic, environmental and techno-commercial aspects. In view of this, a detailed study of CBM produced water of Raniganj coalfield has been carried out to evaluate hydro-chemical variations, quantity, quality, related aquifer characteristics, options of treatment, suitable beneficial uses and disposal. The large amount of TDS is the major concern contributed by cations and anions like Na+, Ca2+ and HCO3−. The trace metal content obtained through Inductively Coupled Plasma Mass Spectrometry (ICPMS) analyses such as Fe2+, Mn2+, Zn2+, Sr2+ and Al3+ varies from 0.12 to 0.94, 0.002 to 0.651, 0.001 to 0.041, 0.005 to 0.801 and 0.002–0.092 mg/l respectively. Atomic absorption spectroscopy (AAS) was used for cations (Na+, K+, Mg2+ and Ca2+) distribution found ranged from 289 to 1136, 0.00 to 0.94, 0.18 to 1.82 and 10.2–21.2 mg/l respectively, whereas, anions (SO42−, F−, Cl−, NO3− and HCO3−) were determined using Ion Chromatography (IC), found varying from 0.14 to 1.62, 1.042 to 4.862, 114.42 to 565.21, 7.41 to 70.4 and 1923.4–3129.4 mg/l respectively. The CBM produced water is classified as Na+–K+–CO32-–HCO3- and Na+–HCO3- type attributed to different rock formations of aquifers and deeper coal seams. TDS and trace metals concentrations are controlled by depositional environment, local marine transgression occurred during the Sakmarian - Artinskian geological period and inherited from groundwater mineral interactions. The results of proposed model for quality parameter prediction signifies TDS content is observed to be low during the initial five years of production and gradually increases with time. The similar trend is shown by HCO3−, Na+, SO42−, F−, Cl− and NO3− signifying the rock interaction and alterations is the only source of minerals and ions. Initially, the shallow aquifer water having interaction with fresh water recharge dilutes the concentrations of different water quality parameters, but as production continues, the concentration of constituents directly controlled by formation rocks and may increase until it reaches the saturation point. The continuous drawdown of water from a large number of CBM wells changing the regional static hydrological balance including a drainage system and it may take long spells to recuperate its original levels. This study can be utilized in designing treatment processes, beneficial uses and exploring the new water resources in Raniganj coalfield.