The Reserve Bank of India (RBI) is working towards achieving a target of one million active customers on its central bank digital currency (CBDC) or e-rupee by the end of June. However, there is no fixed date for its launch yet.
The RBI Deputy Governor, T Rabi Sankar, confirmed this and emphasized that the transition to CBDC usage across the country will be a gradual and calibrated process.
Pilot Program for CBDC Implementation Runs Smoothly in Indian Cities
The initial pilot phase for the e-rupee in the retail segment commenced on December 1, 2022, limiting to select locations with customers and merchants nationwide. Concurrently, a pilot program for the e-rupee in the wholesale segment was launched on November 1, 2022, facilitating secondary market transactions in government securities with nine banks.
The pilot program for CBDC was initially conducted in Mumbai, New Delhi, Bengaluru, and Bhubaneswar with a select group of customers and merchants. As the program progressed, it gradually expanded across the country.
The participating banks included State Bank of India, ICICI Bank, YES Bank, and IDFC First Bank. Later, Bank of Baroda, Union Bank of India, HDFC Bank, and Kotak Mahindra Bank joined, expanding the collaborative effort in developing and implementing CBDC.
RBI’s Plan to Integrate CBDC QR Codes with India’s UPI System
The RBI plans to interoperate CBDC QR codes with India’s Unified Payments Interface (UPI), which facilitates digital banking transactions for individuals and merchants through various channels such as debit or credit cards, internet banking, and mobile wallets. The integration of UPI with CBDC QR codes will enhance the overall usability and adoption of CBDC in the Indian financial ecosystem.
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