E-Rupee: The Reserve Bank of India may allow the use of digital rupee in interbank borrowing or call money market from October. According to the information, initially, it will be started as a pilot project.
As per media reports, Reserve Bank Executive Director Ajay Kumar Chaudhary said that The central bank can launch the e-rupee in the call money market in October.
Earlier, in November this year, the Central Bank Digital Currency (CBDC) initiated the use of digital currency in the wholesale market. It is worth noting that the transaction was limited to transactions in the secondary market only in government securities.
The use of e-rupee may start in the CBDC call market next month
According to officials, the CBDC will be issuing digital currency in the next month i.e. October 2023 and it will be offered for use in bulk in the call money market.
Earlier, during the budget session, Finance Minister Nirmala Sitharaman announced the issue of digital currency. The currency will have a similar value to normal physical currency, only it will be digital instead of physical.
These banks took part in the pilot project of the RBI
The Reserve Bank also launched a pilot project for retail use of e-rupee. A total of 9 banks, including State Bank of India, Union Bank of India, Bank of Baroda, Kotak Mahindra Bank, Yes Bank, HDFC Bank, IDFC First Bank, and HSBC Bank were allowed to issue e-rupees.
