RBI Governor says India's digital currency still in 'experimental stage'
What's the story
Reserve Bank of India (RBI) Governor Shaktikanta Das has reiterated that the Central Bank Digital Currency (CBDC) remains experimental. Although there has been considerable progress on the retail and wholesale fronts, Das highlighted that the central bank isn't hurrying to officially launch the CBDC. He also noted that the RBI will only go for a full-scale launch when it is fully satisfied with the pilot program's results.
Inter-bank operations
Wholesale CBDC and its role in inter-bank transactions
The wholesale avatar of the CBDC was launched in November 2022, for settling inter-bank transactions of government securities. The digital currency has been instrumental in simplifying these transactions. However, despite its successful implementation, Das reiterated that the RBI is still on a learning curve when it comes to this new form of currency.
Expansion
Retail pilot of CBDC expands to multiple banks
The retail pilot for the CBDC has now been expanded to include multiple banks, with eight being chosen to participate initially. Users can access this digital version of the Rupee, called e-Rupee, from a digital wallet offered by these participating banks. The e-Rupee provides features similar to physical cash such as security and settlement but doesn't earn interest like traditional bank deposits.