Digital Rupee is not far away! RBI shortlisted 5 banks for pilot project

New Delhi. Reserve Bank of India (RBI) has engaged 5 banks on a pilot project to bring its digital currency (Digital Rupee) for the retail market. According to a report in The Economic Times, these banks are – State Bank of India, ICICI Bank, IDFC First Bank and HDFC Bank.

In the report, citing people familiar with the matter, it has been said that the Reserve Bank of India may add some more banks for the pilot project. This project is expected to start soon.

The RBI is simultaneously working on two fronts to test the central bank digital currency (CBDC): one for the wholesale market, for which a pilot project is already underway, and the other for retail or retail markets. stands for Retail (CBDC-R).

Also Read – PHOTOS: Follow These Tips To Avoid UPI Fraud

thinking on many things
The central bank is also trying to figure out whether to create a new framework for its digital currency or make retail CBDCs interoperable with existing digital payment systems.

According to the report, a person told, “5 banks have been shortlisted to run the pilot project with the help of NCPI (National Payments Corporation of India) and RBI. Some customer and merchant accounts will soon be selected to start the digital rupee pilot project in retail.

RBI had given this suggestion in the concept note
In a concept note last month, the RBI suggested that it was considering giving anonymity to CBDC retail payments of value below Rs 50,000, similar to what people do when transacting small amounts of cash. We do.

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With the growing trend of private cryptocurrencies, many countries in the world are considering launching their own digital currencies. It will be based on the same blockchain technology as cryptocurrencies. The purpose of CBDC is to reduce dependence on cash.

The concept of two types of CBDC (Retail and Wholesale) is meant to serve specific purposes. Retail CBDCs can be used by all, while wholesale CBDCs will be limited to a select few financial institutions.

Tags: business news, Currencies, Digital India, digital payment, Indian currency, RBI

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