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Indian e-rupee to boost digital payments sans bank accounts
November 07, 2022
The rollout of the e-rupee has been one of the most sought-after developments, since its announcement in the FY23 Union budget.
Jaya Vaidhyanathan, CEO of BCT Digital, said that the RBI’s commencement of the pilot of the digital rupee marks appreciable progress in the journey toward digital payments.
“The initiative has started in the low volume, high-value wholesale (interbank) segment from where learnings would be used to roll out reliable, built-to-scale retail payments,” said Vaidhyanathan.
The pilot announcement involves nine banks, including the SBI, the Bank of Baroda, the HDFC Bank, the Yes Bank, the Kotak Mahindra Bank, and the ICICI Bank, settling secondary market transactions in government securities, thereby reducing settlement risk and transaction costs.
“A successful pilot and by extension, a full rollout of the digital rupee is expected to boost the reach of payment and financial needs of a wider category of users while ensuring transparency and low operational cost, and in this regard, it is encouraging to witness the RBI’s support for innovation in creating a world-class, future-ready digital ecosystem,” Vaidhyanathan stressed.
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