RBI Launches first digital Rupee business pilot in 13 Indian cities with 8 banks. India’s central bank, the Reserve Bank of India (RBI), is launching its first digital banking pilot on December 1 with the participation of eight banks. The pilot will start in four cities and expand to nine more cities across India.
RBI selects 8 banks in 13 countries to test digital currency trading
The Reserve Bank of India (RBI) announced on Tuesday that “the first pilot project for Digital Market Rate (e₹-R)” will be launched on December 1. 1. This announcement follows the RBI’s Central Bank Digital Currency (CBDC) pilot which started on November 1. 1.
Eight banks will participate in the second commercial digital currency pilot. State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank in four Indian cities will participate for the first time. Bank of Baroda, Union Bank of India, HDFC Bank and Kotak Mahindra Bank will participate in the second phase.
The central bank of India explained: “The pilot would initially cover four cities, viz., Mumbai, New Delhi, Bengaluru, and Bhubaneswar, and later extend to Ahmedabad, Gangtok, Guwahati, Hyderabad, Indore, Kochi, Lucknow, Patna, and Shimla.”
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“The scope of the pilot can be gradually expanded to include more banks, employees and key locations,” RBI said.
About RBI Retail Digital Rupee
The Central Bank of India explains: The Digital Rupee (e₹-R) will come in the form of a digital token representing the legal interest. The digital rupee will be issued in the same institution as the current paper money and currency, the central bank said, adding that it will be distributed through intermediaries, such as banks.
“Users will be able to transact with e₹-R through digital wallets offered by participating banks and store on mobile phones/devices,” the central bank detailed, note that transactions can be person-to-person (P2P) or individual. . -Merchant (P2M). Customers will display a QR code that can be used to pay.
“e₹-R will provide features of physical currency such as trust, security and finality.
As with money, it will not earn interest and can be converted into other types of money, such as bank deposits,” the central bank continued, adding: “The pilot will test the robustness of the entire process of digital rupee creation, distribution, and retail usage in real time. Different features and applications of the e₹-R token and architecture will be tested in future pilots, based on the learnings from this pilot.”
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