Pilot for digital rupee for wholesale segment to commence on November 1

Use case to be settlement of secondary market transactions in g-secs; RBI says digital rupee is expected to make inter-bank market more efficient, as settlement will reduce transaction costs

The Reserve Bank of India (RBI) on Monday said it will commence the first pilot of the central bank digital currency (CBDC) – the digital rupee – for the wholesale segment from November 1. The use case for this pilot will be settlement of secondary market transactions in government securities.

In a statement, RBI said, the use of the digital rupee is expected to make the inter-bank market more efficient, as settlement in central bank money will reduce transaction costs by pre-empting the need for settlement guarantee infrastructure or for collateral to mitigate settlement risk.

“Going forward, other wholesale transactions,