The pilot project for Central Bank Digital currency (CBDC) in the retail segment went live on December 1, 2022.
Key points
- The Reserve Bank of India (RBI) has identified four banks for the first phase of the pilot — State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank — in four cities, Mumbai, New Delhi, Bengaluru and Bhubaneswar.
- The retail digital rupee, or e₹-R, can be used by people for day-to-day transactions.
- The Digital Rupee wallet will be like a physical wallet, but in digital form that will be available for download on smartphones with an Android OS.
- Payments to merchants can be made through a unique QR code displayed at respective merchant touch points.
- The currencies were digitally issued to banks and customers will be able to place the request for digital rupee through their digital wallet in their mobile app, which is provided by their banks and the requested amount is credited in their digital rupee wallet.
- The customers can pay the digital rupee to the individual and their merchants.
- The retail pilot project, locations in closed user groups, will be in the form of a digital token that represents legal tender. The digital rupee is issued in the same denominations that paper currency and coins are issued.
