RBI Plans To Introduce CBDC In Call Money Market
According to a senior official on Tuesday, RBI intends to permit use of Central Bank Digital Currency (CBDC) in the call money market. He added that India wants to spread acceptance of UPI and other digital products among a wide range of nations. The G20 Leadership Summit will feature a presentation for all of these goods.
The Reserve Bank of India (RBI) plans to use digital rupees (CBDCs) as tokens for call money settlement in the inter-bank borrowing market, specifically the call money market, as announced in the FY23 Budget. Currently, CBDC-W is being used as a pilot for settling trade in the government securities market.
The RBI has expanded its retail CBDC pilots to 13 banks and 26 locations, with nearly 20 lakh million users and merchants on board. The goal is to process 10 lakh daily transactions by December. In July, 20,000-25,000 transactions were made, but August saw a slight dip due to inter-operable infrastructure.
The Reserve Bank of India (RBI) plans to test various use cases and technical architectures in future pilots, including offline usage for resilience and availability in network absences. The RBI will also showcase various digital initiatives in the financial sector at the G20 Summit, including the Public Tech Platform for Frictionless Credit, CBDC, UPI One World, RuPay On-The-Go, and Bharat Bill Payment System.
(With inputs from Shikha Singh)
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