November 22, 2024 19:52 (IST)
Follow us:
Digital Rupee Mumbai/IBNS: Reserve Bank of India's (RBI) retail central bank digital currency (CBDC) pilot kicked off on Thursday (Dec. 1), a month after India's central bank launched the wholesale version for the same.
Initially, RBI will start the process with four banks- ICICI Bank, SBI, Yes Bank, and IDFC Bank.
In the second phase, Bank of Baroda, Union Bank of India, HDFC Bank and Kotak Mahindra Bank will also join in.
The pilot will take place in select locations within a Closed User Group (CUG), as per an official press release.
Delhi, Mumbai, Bhubaneshwar, and Bengaluru have been selected as the pilot cities, while Gangtok, Guwahati, Ahmedabad, Hyderabad, Indore and Kochi among others are next in line.
Digital Rupee
The e-rupee will be a legal tender in the form of a digital token.
Issued denominations will be the same as the physical notes and coins in circulation.
People will be allowed tokeep digital rupee in the e-wallet given by participating banks.
The e-currency will be in use for Person-to-Person (P2P) and Person-to-Merchant (P2M) transactions, as per media reports.
Payments to merchants can be made using QR codes displayed at merchant locations.
Points of difference with UPI
Unlike UPI, users will need to create a separate CBDC account linked with RBI's server, Moneycontrol reported.
Plus, the users will have to back up their CBDC account with a savings account, as per an IndiaToday report.
The transactions will take place on the Indian central bank's blockchain and not on bank servers such as UPI, Immediate Payment Service (IMPS) or National Electronics Funds Transfer (NEFT) transactions, according to a Moneycontrol report.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
Support objective journalism for a small contribution.
Latest Headlines
Mahindra teases sketches of BE 6e, XEV 9e Fri, Nov 22 2024
Ather Energy Limited unveils ‘Eight70 Warranty’ for the battery of its electric scooters Fri, Nov 22 2024
Bitcoin soars to all-time high, nearing the $100,000 milestone Fri, Nov 22 2024
Mukesh Ambani's Jio loses nearly 80 lakh subscribers in just 30 days; BSNL emerges as a gainer Fri, Nov 22 2024
Kenya cancels Adani airport and energy deals following US bribery indictment: Report Fri, Nov 22 2024
Why is US probing Gautam Adani over allegations of bribery in India? Thu, Nov 21 2024
Elon Musk's xAI raises $5 billion, doubling valuation to $50 billion Thu, Nov 21 2024
Byju Raveendran accused of trying to regain firm with hidden cash Thu, Nov 21 2024