RBI to commence pilot launch of Digital Rupee for specific use on November 1; check details

By Team Newsable | First Published Oct 31, 2022, 6:12 PM IST

The statement also said that the settlement in RBI money would reduce transaction costs by preempting the need for settlement guarantee infrastructure or for collateral to mitigate settlement risk.

The Reserve Bank of India (RBI) on Monday (October 31) said that it will commence pilot launches of the Digital Rupee for specific use cases on November 1, 2022. According to the central bank the first pilot in Digital Rupee will be in the Wholesale segment and will commence on Tuesday.

It is also said that nine banks will participate in the pilot, 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.

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In a statement, RBI said, "The use case for this pilot is settlement of secondary market transactions in government securities. Use of this is expected to make the inter-bank market more efficient."

It also said that the settlement in RBI money would reduce transaction costs by preempting the need for settlement guarantee infrastructure or for collateral to mitigate settlement risk.

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"Going forward, other wholesale transactions, and cross-border payments will be the focus of future pilots, based on the learnings from this pilot," it added.

Meanwhile, RBI also said that the first pilot in Digital Rupee - Retail segment is planned for launch within a month in select locations in closed user groups comprising customers and merchants.

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