Get All Access for $5/mo

RBI To Launch First Pilot Of Digital Rupee As per reports the pilot for retail digital currency is likely to be launched this month

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Pexels

The Reserve Bank of India's sovereign digital currency is going to be launching its first pilot digital rupee in the wholesale segment on Tuesday. As per reports the pilot for retail digital currency is likely to be launched this month.

"The use case for this pilot is expected to make inter-bank market more efficient. Settlement in central bank money would reduce transaction costs by pre-empting the need for settlement guarantee infrastructure or for collateral to mitigate settlement risk. Based on the learning from the first phase of the pilot, the future pilots would focus on other wholesale transactions and cross-border payments," said RBI in a statement.

Nine banks which includes, SBI, BoB, Union Bank of India, HDFC, ICICI, Kotak Mahindra Bank, Yes Bank, IDFC First Bank and HSBC, have been identified to participate in the first pilot phase.

Anita Mishra, head of securities services HSBC India, in a news report was quoted as saying, "While there have been few CBDC test cases around the world in a user acceptance testing (UAT) environment. India's step towards wholesale CBDC test is among the very first pilot projects."

On October 7, the RBI released a concept note to create more awareness about the digital rupee. According to the concept note, the wholesale e-rupee will work on an account-based model, which would require keeping record of balances and transactions of all holders of digital currency and indicate the ownership of the monetary balances.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Money & Finance

Avoid These 10 Mistakes Entrepreneurs Make with Money

Despite the challenging statistic that only 5% of startups survive beyond five years, common financial pitfalls often contribute to their failure. Through personal observation, I've identified the prevalent financial mistakes made by entrepreneurs.

News and Trends

Battery Smart Raises USD 65 Mn in Series B to Boost EV Battery Swapping Network

Orios Venture Partners achieves a 29x return with a strategic partial exit from Delhi-based EV startup, enhancing early-stage investment success.

Business News

Homeowners in These 10 States Pay the Most in 'Hidden' Upkeep Costs

Hidden home costs pile on top of mortgage payments.

Growing a Business

How Visionary Leaders Transform Curiosity Into Groundbreaking Ideas

Lee Brian Schrager, founder of the South Beach Wine & Food Festival, discusses the spark that launched FoodieCon, his best practices for running popular food events, and why all business owners need to adapt to social media trends.

Thought Leaders

4 Steps You Need to Follow to Make It Through Any Crisis With Your Company Intact

The steps we take before a crisis define our team's future resilience in the face of one. Here's what you need to do to prepare for a crisis of any kind at any time.