The Reserve Bank of India has confirmed that its first retail digital Rupee pilot will commence on December 1. Initially, it will involve four banks in four cities, with another four banks and nine locations already identified. At this stage, it’s not a public trial with a closed user group of consumers and merchants involved.
The central bank digital currency (CBDC) is to be issued as digital tokens in the same denominations as physical cash via the banks. The participating banks – State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank – will provide mobile wallets, and consumers can pay each other or shop by scanning QR codes. The settlement will be instant and like cash, the digital currency will not attract any interest.
Additional functionality will be tested in future phases. Previous unofficial reports mentioned that the National Payments Corporation of India (NPCI) is involved. While that’s highly likely, it was not confirmed in today’s announcement. NPCI is responsible for most payment rails in India.
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