RBI: The Reserve Bank of India stated on Monday that the Digital Rupee (eâ1) pilot programme will start on November 1, 2022, for certain use cases (Tuesday). According to the notice, the first Digital Rupee pilot will start on Tuesday and will be in the Wholesale category (eâ1-W).
Who will participate?
Nine institutions, 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, were named by the central bank as participating in the pilot.
Use case for this pilot project
“Settlement of secondary market transactions in government securities is the use case for this pilot project. The interbank market is anticipated to become more productive with the use of e-1-W “In a formal announcement, RBI added.
Additionally, it was stated that settlements made using central bank funds would result in lower transaction costs because no infrastructure for settlement guarantees or collateral to decrease settlement risk would be required.
On the basis of the lessons learned from this pilot, future pilots would concentrate on other wholesale transactions and cross-border payments, it was said.
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The first pilot in the Digital Rupee – Retail segment (eâ1-R), according to the RBI, is scheduled to go live in a month in a few select areas with limited user groups made up of customers and merchants.
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