The Reserve Bank of India (RBI) has issued a Central Bank Digital Currency Note (CBDC) concept on October 7, 2022 which can be accessed on the RBI website, said Pankaj Chaudhary, Union Minister of State for Finance
The Central Bank Digital Currency (CBDC) the pilot launched by RBI in the retail segment has components based on blockchain technology, said Pankaj Chaudhari, Union Minister of State for Finance in response to a question in the Lok Sabha on Monday.
Chaudhari said that the bank launched a CBDC pilot project in the wholesale and retail segments.
“Digital Rupee (Segment-Wide Pilot) – Wholesale (e₹-V) was launched on November 1, 2022. This is expected to make the interbank market more efficient,” he said.
Talking about Digital Rupee Retail (e₹-R), the minister added that it was launched on December 1, 2022 in a pilot retail segment consisting of participating buyers and merchants.
A total of eight banks have been finalized for phased participation in the population pilot project.
In the first phase, the banks involved are State Bank of India (SBI), ICICI Bank, Yes Bank and IDFC First Bank. The remaining four banks are Bank of Baroda, Union Bank of India, HDFC Bank and Kotak Mahindra Bank.
Chaudhari further informed that e₹-R is a type of digital token that will be legal tender and will be issued in the same denominations as paper currency and coins.
Also, distribution will be done through financial intermediaries, ie banks. Transactions can be done both person-to-person (P2P) and person-to-merchant (P2M).
Like cash, CBDC will not earn any interest and can be converted into other forms of money, such as bank deposits, he added.