Now Reading
On December 1st, RBI will begin the first retail digital rupee trial

On December 1st, RBI will begin the first retail digital rupee trial

The Reserve Bank of India announced that the retail digital rupee’s first pilot programme would begin on December 1, 2022. Eight banks have been chosen, per the RBI Press Release, to take part in this pilot project in various phases. The first phase would start with four banks across four locations across the nation, including the State Bank of India, ICICI Bank, Yes Bank, and IDFC First Bank. Four other institutions will eventually join this trial, including Bank of Baroda, Union Bank of India, HDFC Bank, and Kotak Mahindra Bank.

Beginning with Mumbai, New Delhi, Bengaluru, and Bhubaneswar, the pilot will subsequently include Ahmedabad, Gangtok, Guwahati, Hyderabad, Indore, Kochi, Lucknow, Patna, and Shimla. If more banks, users, or locations are required, the pilot’s scope may be gradually increased.

In a closed user group (CUG) made up of participating customers and retailers, the pilot would cover a few specific areas. The virtual rupee will take the shape of a digital token that stands in for money. Through a digital wallet provided by the participating banks and kept on mobile devices, users would be able to conduct transactions using digital rupee. Transactions may be made between individuals or among merchants.

See Also

Use the QR codes that are displayed at merchant locations to make payments to the businesses. Features of physical money like trust, safety, and settlement finality would be offered by the digital rupee. It can be turned into other forms of money, such bank deposits, but it will not accrue any interest, just like cash. During the pilot, the stability of the entire creation, distribution, and retail use of digital rupees will be tested in real time. The lessons learned from this pilot will be used to inform the testing of various features and uses of the digital Rupee token and architecture in subsequent pilots.

What's Your Reaction?
In Love
Not Sure
View Comments (0)

Leave a Reply

Your email address will not be published.

© 2020 All Rights Reserved. |

Scroll To Top