RBI plans to use digital currency in bulk in call money market
[ad_1]
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.
New Delhi. 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 Tuesday. 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 wholesale CBDC has been to try various technologies…” Finance Minister Nirmala Sitharaman had announced to bring CBDC in the general budget 2022-23. For this, necessary amendments were made in the relevant section of the RBI Act, 1934 with the passage of Finance Bill 2022. Taking a step in this direction, RBI started pilot testing of 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 that 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. When asked about the termination of the digital currency pilot project, the sources said that no timeline has been fixed for it.
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.
Disclaimer: IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
[ad_2]
Source link
