Digital rupee.

The Reserve Bank of India (RBI) said that the central bank digital currency (CBDC), issued on a pilot basis, is being gradually expanded to include more banks and places. The pilot-based digital rupee for wholesale use was launched on November 1, 2022. After that, the use of digital rupee in the retail segment was announced on December 2022, <>.

The pilot project was launched in Mumbai, New Delhi, Bengaluru and Bhubaneswar. It included customers and merchants in a limited scope for use. Ahmedabad, Chandigarh, Gangtok, Guwahati, Hyderabad, Indore, Kochi, Lucknow, Patna and Shimla are also being included in the pilot project in a phased manner.

The pilot project is being implemented by four banks. Launched with State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank. Four other banks... Bank of Baroda, Union Bank of India, HDFC Bank and Kotak Mahindra Bank later joined.

The central bank said in the 2022-23 report, "Five more banks... Punjab National Bank, Canara Bank, Federal Bank, Axis Bank and IndusInd Bank are in the process of joining the pilot project. Its scope is being gradually expanded to include banks, users and locations as per the need.

According to the report, so far things are satisfactory in terms of wholesale and retail digital rupee and are in line with what was expected.

With regard to the digital rupee wholesale segment, it said it covers settlement of secondary market transactions in government securities. The use of digital rupee-wholesale segment is expected to make transactions between banks more efficient. This arrangement is expected to reduce the cost of disposal.

There are currently 9 banks... 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... Are participating in the pilot.