Categories: Banking

RBI Chooses 5 Banks for Retail Digital Currency Pilot

State bank Of India(SBI), ICICI Bank, IDFC First Bank, HDFC Bank and Yes Bank are among a shortlist of at least five lenders that the Reserve Bank of India (RBI) has roped in to work on the retail pilot project of the central bank digital currency (CBDC).

Buy Prime Test Series for all Banking, SSC, Insurance & other exams

What The Report Said:

The report said, citing people familiar with the matter, that the Reserve Bank of India could add more banks to run the pilot, which is expected to launch soon. “Five banks have been shortlisted to run the pilot along with the help of NPCI (National Payments Corporation of India) and RBI. Some customer and merchant accounts will be chosen to roll out the retail digital rupee pilot soon,”

RBI’s Strong Push:

The RBI is working on two fronts to test the central bank digital currency (CBDC): one for the wholesale market, for which a pilot project is already underway, and the other for retail (CBDC-R).
The central banker is also weighing whether to build a new framework for its digital currency or make retail CBDC interoperable with the current digital payments system.

Need Of This:

Several countries are considering launching their own digital currencies after private cryptocurrencies took the world by storm. Based on the same blockchain technology, these CBDCs are aimed at reducing the dependence on cash.
The two types of CBDC — retail and wholesale — are conceptualised to serve specific purposes. While retail CBDC can be used by all, wholesale CBDC will have access restricted to select financial institutions.
Piyush Shukla

Recent Posts

World Basketball Day 2025 Celebrates Basketball’s Journey to Global Fame

World Basketball Day 2025 highlights the remarkable journey of basketball from a simple indoor game…

13 hours ago

UN Celebrates Second World Meditation Day to Promote Inner Peace Worldwide

The United Nations marked the second World Meditation Day on the 21st December with a…

13 hours ago

Winter Solstice 2025 Observed on Sunday, Bringing the Year’s Shortest Day

The Winter Solstice 2025 occurs on Sunday, December 21 marking the shortest day and longest…

13 hours ago

Haryana Assembly Passes Resolution to Commemorate 350th Martyrdom Year of Guru Tegh Bahadur Ji

The Haryana State Assembly has unanimously passed a resolution to mark the 350th martyrdom year…

24 hours ago

Which Country is Known as the Land of Cherry Blossoms?

Every country has something special that makes it famous around the world. Some are known…

1 day ago

Operation Hawkeye: US and Jordan Strike ISIS Sites in Syria

The United States and Jordan have carried out a major military operation in Syria called…

1 day ago