The Reserve Bank of India (RBI) is launching its first digitalrupee pilot on Nov. 1. Nine banks will participate. CBDC
India’s central bank, the Reserve Bank of India , is launching its first digital rupee pilot on Nov. 1. with the participation of nine banks. “Settlement in central bank money would reduce transaction costs by pre-empting the need for settlement guarantee infrastructure or for collateral to mitigate settlement risk,” said the central bank.
Nine banks, viz., State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank, and HSBC have been identified for participation in the pilot. “The use case for this pilot is settlement of secondary market transactions in government securities,” the RBI described. “Use of e₹-W is expected to make the inter-bank market more efficient. Settlement in central bank money would reduce transaction costs by pre-empting the need for settlement guarantee infrastructure or for collateral to mitigate settlement risk.”
The RBI noted that future pilots will focus on other wholesale transactions and cross-border payments. They will take into account the findings from the first pilot.The first pilot in digital rupee — retail segment is planned for launch within a month in select locations in closed user groups comprising customers and merchants.explaining various aspects and risks of its central bank digital currency ., representing over 95% of global GDP, are currently exploring a CBDC.
Meanwhile, the U.S. has not decided whether to issue a central bank digital currency. Federal Reserve Chairman Jerome Powell recently said that a digital dollar will take at least
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