Digital Rupee Trial for Interbank borrowing or call money market activities is expected to begin in October

According to Central Bank Executive Director Ajay Kumar Choudhary on Sunday, RBI expects to begin a trial of Central Bank Digital Currency (CBDC). This trial will held  for interbank borrowing or call money market activities by October. Read more : Report: India may have needed 47 years to reach the financial inclusion rate of 80% that it has achieved in just 6 years Choudhary stated on the sidelines of the G20 Summit here that the RBI will launch wholesale CBDC in the call market possibly this month or later in the month.

Digital Rupee-Wholesale (e-W)

According to PTI, the wholesale CBDC pilot, known as the Digital Rupee-Wholesale (e-W), was launched in November 2022, with the use case confined to the settling of secondary market transactions in government securities. CBDC was announced in the Union Budget 2022-23 by Finance Minister Nirmala Sitharaman.  Necessary adjustments to the relevant part of the RBI Act, 1934, were enacted with the adoption of the Finance Bill 2022.

According to PTI, the RBI chose nine banks for its wholesale CBDC pilot project:

• State Bank of India
• Bank of Baroda
• Union Bank of India
• HDFC Bank
• ICICI Bank
• Kotak Mahindra Bank
• YES Bank
• IDFC First Bank
• HSBC

Furthermore, the central bank has already launched a trial in the retail version of the CBDC (e-R) on December 1, 2022. The e-R is a legal tender digital token. It is produced in the same denominations as paper cash and coins. It is provided through financial intermediaries such as banks. According to PTI, users can transact using e-R via a digital wallet provided by collaborating banks. During the G20 Summit, the RBI displayed several digital efforts in the financial sector at the exhibition pavilion. Public Tech Platform (PTP) for Frictionless Credit, CBDC, UPI One World, RuPay On-The-Go, and Bharat Bill Payment System are among them. OTT India updates you with the latest news, The Country’s no.1 digital news platform OTT India. Keeps you updated with national, and international news from all around the world. For more such updates, download the OTT India app on your Android and IOS device.