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E-Rupee yet to take off in a big way
June 01, 2023
After five months since the launch of central bank digital currency – retail (CBDC – retail) popularly referred to as e-Rupee retail, the retail digital currency in circulation stood at a meagre ₹5.7 crore, according to the Reserve Bank of India’s annual report for FY23.
The total e-Rupee wholesale in circulation stood at ₹10.69 crore as on March 31, 2023. Together, the digital currencies account for ₹16.39 crore, which is not even 0.0001 per cent of the total bank notes in circulation.
Both digital currencies are presently in the test or pilot phases. E-Rupee wholesale was launched on November 1, 2022 and the e-Rupee retail a month later. While the wholesale digital currency is right now limited to settlement of secondary market transactions in government securities or G-Secs, the retail digital currency is available for widespread use just like physical cash. However, only four banks – YES Bank, IDFC First Bank, ICICI Bank and State Bank of India have been roped in for the first phase of piloting the e-Rupee retail.
“During 2023-24, the Reserve Bank aims at expanding the ongoing pilots in CBDC-Retail and CBDC-Wholesale by incorporating various use cases and features. The pilot in CBDC-Retail is proposed to be expanded to more locations and to include more participating banks,” according to RBI’s annual report for FY23.
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