RBI declares its pilot project of Digital Rupee with CBDC
In October 2022, the Reserve Bank of India issued an official concept note to Central Bank Digital Currency (CBDC) regarding tips and guidelines for creating the intended digital currency.
The prime purpose of this concept note was to serve both the wholesale and retail sectors in terms of effective utilization. As per the set deadline, RBI is ready to launch the pilot project, in conjunction with CBDC, on the 1st of November, 2022. This grand launch will see the active participation of nine banks.
Operationalisation of Central Bank Digital Currency-Wholesale (e₹-W) Pilothttps://t.co/wsvGUOlErT
— ReserveBankOfIndia (@RBI) October 31, 2022
The central bank has duly released this information. The selected prime banks are HDFC Bank Ltd, State Bank of India, ICICI Bank Ltd, YES Bank Ltd, Kotak Mahindra Bank Ltd, and HSBC, among others. In the case of this first phase of the launch, the targeted segment is the secondary marketplace, which is involved in activities related to government-based securities.
However, this has been decided, keeping in mind the further enhancement of all transactions carried out in the inter-bank market scenario. However, this will further enable all transactions to be more competitively priced. This factor will become achievable by correctly anticipating the requirement for settlement guarantee configurations.