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

e-rupee, digital currency
Premium

Earlier this month, the RBI came out with a concept note for CBDC where it said it is exploring the launch of a digital currency with minimal disruption to the financial system

Subrata Panda Mumbai
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,

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Oct 31 2022 | 6:04 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com