The Reserve Bank of India (RBI) announced in an official press release dated November 29 that the first pilot for the retail version of the digital Rupee (e-R) will be implemented on December 1, 2022. The RBI first tested the digital rupee in the wholesale market on November 1.
According to RBI, four banks will participate in the pilot project’s first stage, which will focus on the four cities of Mumbai, New Delhi, Bengaluru, and Bhubaneswar. A select set of consumers and merchants will be able to use the electronic rupee (e₹-R), or e-rupee.
“Eight banks have been identified for phase-wise participation in this pilot. The first phase will begin with State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank in four cities across the country. Bank of Baroda, Union Bank of India, HDFC Bank and Kotak Mahindra Bank will join this pilot subsequently,” said RBI.
The e-R would resemble real money in terms of trust, security, and finality of settlement. In addition, it can be converted into other monetary forms, such as bank deposits. However, like cash, this will not accrue any interest, the central bank stated.
Edited by Tanmoy Mitra