Business
RBI Launches First Pilot For Digital Rupee, Nine Banks Identified For Participation In The Project
Reserve Bank of India (RBI). (Ramesh Pathania/Mint via Getty Images)
The Reserve Bank of India (RBI) on Monday (31 October) said the first pilot of the Central Bank Digital Currency -- Digital Rupee (Wholesale segment) will be launched on Tuesday (1 November) for transactions in government securities.
The use case for the pilot is settlement of secondary market transactions in government securities, the RBI said in a statement.
RBI said that the 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.
Going forward, other wholesale transactions, and cross-border payments will be the focus of future pilots, based on the learnings from this pilot, the central bank said.
Nine banks -- 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 -- have been identified for participation in the pilot.
The RBI also said the first pilot of Digital Rupee - Retail segment is planned for launch within a month in select locations in closed user groups comprising customers and merchants.
(With inputs from PTI)
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.
Latest
