RBI Explores CBDC Use in Wholesale Markets and Retail Payments
The Reserve Bank of India (RBI) has launched a pilot program to test its wholesale central bank digital currency (CBDC) in the call money market.
According to sources familiar with the development, the central bank has already conducted transactions in this market. The call money market is a crucial component of the Indian financial system, facilitating overnight and short-term fund trading among banks and financial institutions. Nine banks, including State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank, and HSBC, which were part of the RBI’s previous government securities pilot, are participating in this digital rupee pilot.
Moreover, the future will see exploration of additional use cases, such as asset tokenization and repo transactions. The ultimate goal is to cover the entire wholesale segment, making CBDCs available for various financial activities. In addition to this, the RBI had already initiated a CBDC pilot in the retail segment, which has gained considerable traction, with millions of users and thousands of merchants accepting CBDC payments.
Clever Robot News Desk 16th October 2023
