The Reserve Bank of India’s pilot project on retail digital rupees is a “game changer,” according to SBI Chairman Dinesh Khara, and will have long-term effects that will ensure better monetary transmission at lower costs. “Its acceptance is dependent on anonymity. It collaborates, complements, and completes the current currency architecture, while also incubating additional innovation,” said Khara in a statement.
The Reserve Bank of India announced the launch of a digital rupee retail pilot for a limited user group on Thursday. Citizens will be able to make or receive currency payments in a completely digital mode using the token-based digital rupee, according to a video clip posted on social media by the Reserve Bank of India on the day of the launch.
The pilot will be limited to a few cities and banks. Person-to-person (P2P) and person-to-merchant (P2M) transactions are both possible (P2M). According to an RBI statement released prior to the launch, payments to merchants can be made using quick response (QR) codes displayed at merchant locations.
Eight banks have been identified by the central bank for phased participation in this pilot. The first phase will begin with four banks in four cities across the country, namely State Bank of India, ICICI Bank, Yes Bank, and IDFC First Bank. Following that, four more banks, namely Bank of Baroda, Union Bank of India, HDFC Bank, and Kotak Mahindra Bank, will join this pilot.
The pilot will begin in four cities: Mumbai, New Delhi, Bengaluru, and Bhubaneswar, and will later expand to Ahmedabad, Gangtok, Guwahati, Hyderabad, Indore, Kochi, Lucknow, Patna, and Shimla.