On December 1, the Reserve Bank of India launched its first retail digital Rupee pilot with a closed user group. Initially, it involves the four state-owned banks – State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank – that provide smartphone wallets to enable access.
The first video demos of the central bank digital currency (CBDC) show the previously announced use of tokens using the same denominations as physical cash. The wallet address is associated both with the phone’s sim card and a bank account.
However, rather than using a bank account, the mobile app offers the option of using the Indian Aadhar identity and later topping up using the UPI payment method. There’s also the option of creating a ‘basic’ wallet without providing an identity. Like other central banks, any wallet not attached to an identity will likely have transaction limits.
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