Nov 1, 2022
ET OnlineThe Reserve Bank of India will commence the pilot launch of the country's first Digital Rupee on Tuesday, November 1.
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The RBI will launch the Central Bank Digital Currency-Wholesale for specific use cases, meant to be used for the wholesale segment.
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SBI, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank, HSBC will participate in the launch.
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Digital Rupee, or e-Rupee, according to RBI is the legal tender issued by a central bank in a digital form. It is the same as a sovereign currency.
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Retail (CBDC-R) and Wholesale (CBDC-W) are the two types of Digital Rupee that the central bank has conceptualised till now.
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CBDC-R is potentially available for use by all private sector, non-financial consumers and businesses, as per the RBI.
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Wholesale CBDCs are designed for restricted access by financial institutions. They can be used for improving the efficiency of interbank payments.
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A CBDC is freely convertible against commercial bank money and holders need not have a bank account to possess it.
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While both CBDC and cryptos are digital assets, the latter is a decentralised token and is not backed by the government.
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