Indian Central Bank RBI Begins First Digital Rupee Pilot Today
India’s central bank , the Reserve Bank of India (RBI), is launching its first digital rupee pilot on Nov. 1. with the participation of nine banks. “Settlement in central bank money would reduce transaction costs by pre-empting the need for settlement guarantee infrastructure or for collateral to mitigate settlement risk,” said the central bank . RBI’s First CBDC Pilot Starts Nov. 1 India’s central bank, the Reserve Bank of India (RBI), announced Monday that “The first pilot in the digital rupee — wholesale segment (e₹-W) shall commence on November 1, 2022.” The announcement adds: Nine banks, viz., State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank, and HSBC have been identified for participation in the pilot. “The use case for this pilot is settlement of secondary market transactions in government securities,” the RBI described. “Use of e₹-W is expected to make the inter-bank market more efficient. Settl