Home CryptocurrencyAltcoin Reserve Bank of India to launch CBDC retail pilot in December

Reserve Bank of India to launch CBDC retail pilot in December

by SuperiorInvest

After testing its wholesale use central bank digital currency (CBDC), the Reserve Bank of India (RBI) is gearing up to carry out a retail “digital rupee” pilot project. The pilot project should be launched within a month.

According to according to the Economic Times of India, the RBI is in the final stages of preparations to launch a retail digital rupee pilot project. Participants include State Bank of India, Bank of Baroda, ICICI Bank, Union Bank of India, HDFC Bank, Kotak Mahindra Bank, Yes Bank and IDFC First Bank. Reportedly, at some point, the pilot project will cover all commercial banks in the country.

Each bank participating in the test will test the CBDC between 10,000 and 50,000 users. When integrating the new payment option, banks will cooperate with PayNearby and Bankit platforms. The CBDC infrastructure will be owned by the National Payments Corporation of India (NPCI). As an anonymous source explained to Indian journalists:

“The e-rupee will be stored in a wallet, the denominations will be available at the customer’s request, just like you request cash from an ATM. Banks are introducing it only in selected cities.”

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Both customers and merchants will need to download special wallets for the CBDC, though later the RBI plans to fully integrate with existing digital banking services. Reportedly, the digital rupee is meant to complement the current payment system and not replace it.

Wholesale Segment Pilot Project for Digital Rupee launched by the RBI on 1 November. Its main use case was the settlement of transactions in the secondary market of government securities. However, at the time of writing, there is no information on the successful completion of the wholesale pilot program.

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