The Reserve Bank of India (RBI) is getting ready to test the “digital rupee” in a retail setting after having successfully piloted the currency’s use at wholesale levels. The pilot can get public in around a month.
The Reserve Bank of India (RBI) is finishing up preparations for the launch of the retail digital rupee trial as reported by the Economic Times of India. Financial institutions including Bank of Baroda, Union Bank of India, ICICI Bank, HDFC Bank, Kotak Mahindra Bank, State Bank of India, Yes Bank, and IDFC First Bank are partaking.
Eventually, all commercial banks in the country will participate in the pilot as per the reports. In the beginning, CBDC users and retailers will need to install separate wallets. However, the RBI ultimately intends to completely integrate the cryptocurrency into existing digital banking services.
Each participating financial institution will put the CBDC to the test with anywhere from 10,000 to 50,000 consumers. These banking firms will work with the PayNearby and Bankit platforms to implement the new payment method.
The National Payments Corporation of India (NPCI) will manage the CBDC’s underlying infrastructure (NPCI).
Furthermore, the anonymous source told Indian media:
“The e-rupee will be stored in a wallet, the denominations will be available as per the customer’s request, just like you request cash from an ATM. Banks are launching this only in select cities.”
India One Of The Few To Test CBDC
Earlier, RBI has issued a Concept Note on Central Bank Digital Currency (CBDC) for India on 7 October, 2022. The release was followed by RBI beginning the test of its digital rupee in the wholesale sector On November 1st, 2022.
Secondary market transactions in government securities settlement have been its primary application. According to the reports, it was made clear that the digital rupee will function more as a complementary system to the one already in existence rather than as a replacement.