RBI Digital Rupee: The Reserve Bank of India on Tuesday said that the Central Bank Digital Currency (CBDT) issued on a pilot basis is being gradually expanded to include more banks and locations.
The pilot-based digital rupee was launched on November 1, 2022, for use at the wholesale level. After that, on December 1, 2022, the use of digital rupee in the retail segment was announced. Pilot projects were started in Mumbai, New Delhi, Bengaluru and Bhubaneswar. In terms of use, it covered a limited range of customers and merchants.
Ahmedabad, Chandigarh, Gangtok, Guwahati, Hyderabad, Indore, Kochi, Lucknow, Patna and Shimla are also being included in the pilot project in a phased manner.
4 banks have been nominated
The pilot project started with four banks – State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank. While four other banks… Bank of Baroda, Union Bank of India, HDFC Bank and Kotak Mahindra Bank joined later.
5 more banks are in the process of joining
The central bank said in the 2022-23 report that five more banks… Punjab National Bank, Canara Bank, Federal Bank, Axis Bank and IndusInd Bank are in the process of joining the pilot project. The scope is being gradually expanded to include more banks, users and locations as per the requirement.
According to the released report
In terms of wholesale and retail digital rupees, things are satisfactory so far and are as expected. With reference to the digital rupee wholesale segment, it said it covers settlement of secondary market transactions in government securities. Transactions between banks are expected to be more efficient with the use of digital money-wholesale segment. This arrangement is expected to bring down the disposal cost.
Nine banks are currently participating
State Bank of India (SBI), Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank and HSBC) are participating in the pilot.
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