The Reserve Bank of India (RBI) has initiated a wholesale pilot of the Central Bank Digital Currency (CBDC) in the call money market.
- Nine banks, including State Bank of India, ICICI Bank, and HDFC Bank, participated in the pilot, which was launched on November 1, 2022, to settle secondary market transactions in government securities.
- RBI Executive Director Ajay Kumar Choudhary stated that the wholesale CBDC will start interbank borrowing in the call money market by October.
- The retail CBDC is expected to gain momentum soon, with a target of one million transactions per day, up from the current daily run rate of 18,000-20,000 transactions.
According to the RBI Handbook of Statistics on the Indian Economy – 2022-23, the e-rupees or digital rupees in wholesale and retail circulation amounted to Rs 16.39 crore at the end of the year. The most common denomination of the e-rupee in circulation is Rs 500, followed by Rs 200 and Rs 100.