Indian Economy News

Reserve Bank starts pilot digital currency program for select banks

  • IBEF
  • November 2, 2022

India's central bank launched a digital currency pilot programme, allowing select institutions to use it to settle secondary-market transactions in government securities. Banks exchanged Rs. 275 crore (US$ 33.3 million) in bonds on the first day of the new currency, according to Clearing Corp. of India Ltd. data. Nine participating banks completed 24 transactions totalling Rs. 1.4 billion (US$ 16.93 million) in 7.38%, 2027 bonds, 23 transactions totalling Rs. 1.3 billion (US$ 15.72 billion) in 7.26% 2032 bonds, and one transaction in 6.54% 2032 bonds.

According to the Reserve Bank of India, The e-rupee will be tested for retail use in some locations within a month. The RBI previously stated that the central bank’s digital currencies will give consumers with the same experience of trading in currency in digital form, without the hazards associated with private cryptocurrencies. These currencies will also safeguard consumers by avoiding the negative social and economic effects of private virtual currencies.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.