First pilot of Digital Rupee to commence on Tuesday: RBI

New Delhi, Oct 31, 2022

The Reserve Bank of India (RBI) will launch the first pilot of Digital Rupee - Wholesale segment (e₹-W) on Tuesday for transactions in government securities.

In a statement, the RBI said that the use case for this pilot (wholesale segment) is settlement of secondary market transactions in government securities. Use of (e₹-W) is expected to make the inter-bank market more efficient. Settlement in central bank money will cut transaction costs by preempting the need for settlement guarantee infrastructure or for collateral to mitigate settlement risk, the statement said.

"Nine banks, viz., 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 identified for participation in the pilot," the statement said.

The first pilot in Digital Rupee - Retail segment (e₹-R) is planned for launch within a month in select locations in closed user groups comprising customers and merchants. The details regarding operationalisation of e₹-R pilot shall be communicated in due course.

[The Times of India]