E-Rupee transactions surpass 10 lakh per day milestone in December
In a significant milestone, Indian banks distributed employee benefits via digital rupee in December, enabling the Reserve Bank of India (RBI) to reach its goal of 10 lakh daily transactions by 2023's end, per Reuters. The E-Rupee employs distributed-ledger technology and serves as India's central bank digital currency (CBDC). The pilot project, launched in December 2022, saw a surge in transactions after connecting to the Unified Payments Interface (UPI) and major banks disbursing employee benefits directly into CBDC wallets.
E-Rupee pilot sees increased adoption and transactions
The E-Rupee's user base has expanded to around 40 lakh users, a significant increase from 30 lakh in December. Encouraged by the RBI, Indian banks are now offering incentives to promote E-Rupee transactions. Sharat Chandra, co-founder of India Blockchain Forum, as told to Reuters, praised the move, stating that "compensating employees using the CBDC is a good step." He also recommended exploring other areas like toll tax collections to further drive adoption.
User base grows; incentives offered for E-Rupee transactions
With the support of large private and state-run lenders like HDFC Bank, ICICI Bank, Kotak Mahindra Bank, and IDBI Bank, daily transactions rose from an average of 25,000 in October to the current figures. The RBI anticipates that non-financial firms will follow suit, further increasing transaction volumes. This development marks a significant step forward in the adoption of digital currency in India and showcases the potential for CBDCs to transform the financial landscape.
