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RBI plans to expand CBDC pilot to include more banks and locations

May 31, 2023

RBI plans to expand CBDC pilot to include more banks and locations
The Reserve Bank of India (RBI) wants to expand the ongoing pilot of the Central Bank Digital Currency (CBDC) and incorporate various use cases and features in 2023-24. In its annual report for 2022-2023, the central bank said, “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,” it added.
 
Touted as the e-Rupee or Digital Rupee, the RBI CBDC is an electronic form of sovereign currency. The central bank proposed to issue two versions of the Digital Rupee CBDC-Wholesale (CBDC-W) and CBDC-Retail (CBDC-R). CBDC-Wholesale is designed for restricted access to select financial institutions while CBDC-Retail can be used by all including the private sector, non-financial consumers, and businesses.
 
The pilot programme of wholesale Digital Rupee segment started on November 1, 2022. The use case for this pilot is the settlement of secondary market transactions in government securities (G-secs). The use of CBDC-W is expected to make the inter-bank market more efficient, the central bank said. Nine banks including State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank, and HSBC have been participating in the pilot of CBDC-wholesale.
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