Digital Currency: RBI will use the bulk of digital currency in the call money market, this is the plan
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The Reserve Bank of India (RBI) is planning to expand the wholesale use of an experimentally piloted central bank digital currency (CBDC) in the form of tokens in the interbank lending or call money market. RBI sources gave this information. On November 1, 2022, the RBI started an experimental test of the bulk use of CBDC. However, the use of this digital currency was limited to settlement of share transactions in government securities only. RBI sources said, the central bank is now planning to step into the inter-bank loan market. The purpose of the wholesale CBDC has been to try out different technologies.
Nine banks of the country have been included as partners
Finance Minister Nirmala Sitharaman had announced to bring CBDC in the general budget 2022-23. For this, with the passage of the Finance Bill 2022, necessary amendments were made in the relevant section of the RBI Act, 1934. Taking a step in this direction, the RBI started an experimental test of the wholesale use of digital currency. In this, nine banks of the country were included as partners. Shortly after this, the RBI also started testing the retail use of CBDC on December 1, 2022. It is in the form of a digital token which also represents legal tender. However, when asked about the indigenous payment system Rupay, the sources said that no instructions have been given to promote it. Along with this, he said that ‘Rupay’ can be made popular by making it attractive.
Total 10.83 crore transactions worth Rs 24,000 crore in the month of August
When asked about the termination of the digital currency pilot project, the sources said that no deadline has been fixed for this. During this trial, a total of 10.83 crore transactions worth Rs 24,000 crore took place in the month of August. Meanwhile, the Reserve Bank will showcase its various digital initiatives in the financial sector at the exhibition pavilion at the G20 summit later this week. These include Public Tech Platform (PTP) for frictionless credit, CBDC, UPI One World, RuPay on-the-go and Bharat bill payment system.
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