The digital rupee is not intended to replace the current payment system; rather, it is intended to supplement it.
The Reserve Bank of India (RBI) is getting ready to carry out the retail pilot of the “digital rupee” after evaluating the wholesale application of its central bank digital currency (CBDC).Within a month, the pilot ought to go live.
The RBI is nearing completion of preparations for the retail digital rupee pilot, according to the Economic Times of India. State Bank of India, Bank of Baroda, ICICI Bank, Union Bank of India, HDFC Bank, Kotak Mahindra Bank, Yes Bank, and IDFC First Bank are among the participants. According to reports, the pilot will eventually include all of the country’s commercial banks.
The CBDC will be tested among 10,000 to 50,000 users by each bank participating in the trial. The PayNearby and Bankit platforms will work with the banks to integrate the new payment method. The National Payments Corporation of India (NPCI) will manage the CBDC infrastructure.
Indian journalists were informed by the unidentified source that:
“Like cash from an ATM, the e-rupee will be stored in a wallet and available in a variety of denominations upon customer request. Banks are sending off this main in select urban communities.”
The CBDC’s specialized wallets will need to be downloaded by both customers and merchants, but the RBI plans to fully integrate it with existing digital banking services in the future. According to reports, the digital rupee is not intended to replace the current payment system but rather to enhance it.
On November 1, the RBI began piloting the digital rupee’s wholesale segment.
The settlement of government securities secondary market transactions has been its primary application. However, at the time of writing, there is no information available regarding the successful conclusion of the wholesale pilot.
