The Reserve Bank of India Explores Further Use Cases of CBDC in the Wholesale Segment

The Reserve Bank of India (RBI) is broadening its horizons in the digital currency arena. It is now piloting a second use case for its Central Bank Digital Currency (CBDC), this time concentrating on the call money market. The RBI has future plans to broaden the scope of its e-rupee trials to encapsulate the whole wholesale sector, counting asset tokenization and repo transactions among its potential use cases.

The RBI's extended CBDC testing in the Call Money Market

The call money market is an integral part of the Indian financial system. It serves as a platform for banks and other financial institutes to trade their excess funds, either overnight or for a few days, at market rates. The RBI has started to test its wholesale Central Bank Digital Currency (CBDC) in this market, according to reports.

A source reportedly stated, "We have started the wholesale CBDC pilot in the call money market and some deals have already occurred." This statement suggests that the RBI is already making strides in implementing the digital currency in this market.

Banks Participating in the Digital Rupee Pilot

The digital rupee pilot involves nine banks that had previously taken part in the RBI's wholesale pilot for government securities in November of the previous year. These banks are the 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. The Federal Bank has been added to this list, making it a ten-bank collaboration.

Testing Additional Use Cases in the Wholesale Segment

The RBI has an ambitious roadmap for its digital rupee. The bank intends to cover the entire wholesale sector, including asset tokenization where securities will be tokenized, and repo transactions. The ultimate goal is to complete a final pilot for the whole wholesale segment, once all areas are tested and refined.

The RBI’s Retail CBDC Pilot

The RBI isn't limiting its digital currency efforts to the wholesale sector. It launched a CBDC pilot in the retail sector in December last year. RBI Governor Shaktikanta Das announced that the retail digital rupee pilot is being operated through 13 banks across 26 cities. Furthermore, over 300,000 merchants accepted payments in CBDCs.

The expansion of the digital rupee to nearly 1.46 million users signifies a significant step towards the mass adoption of digital currencies in India.

What's Next for the RBI's CBDC?

The Reserve Bank of India's efforts to expand its Central Bank Digital Currency testing in both the retail and wholesale sectors indicate the bank's commitment to digital currency. With plans to broaden the scope of e-rupee testing to include the entire wholesale sector, India is making significant strides in its digital currency journey. The future of digital currencies in India, led by the RBI, seems promising.

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  • The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (
  • This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (
  • If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (
  • Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (
  • If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (

External Links

How To

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By: Kevin Helms
Title: The Reserve Bank of India Explores Further Use Cases of CBDC in the Wholesale Segment
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Published Date: Sat, 14 Oct 2023 02:30:04 +0000

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