The Reserve Bank of India (RBI) is preparing to launch a pilot program for its Central Bank Digital Currency (CBDC), known as the Digital Rupee, by October. Initially launched in November 2022 with a focus on settling secondary market transactions in government securities, this expansion will facilitate interbank transactions and borrowing in the call money market.
Nine banks, including State Bank of India, HDFC Bank, and ICICI Bank, were selected for the wholesale CBDC pilot project. Additionally, the RBI introduced a pilot for the retail version of the CBDC in December 2022, allowing users to transact using digital tokens representing legal tender through participating banks' digital wallets. These initiatives mark significant strides in India's digital financial landscape.