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.
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.
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