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

Current Affairs Capsule PDF (8th August, 2026)

National News Centre Opposes Extending Creamy Layer Principle to SCs The Union government has told…

2 hours ago

International Day of the World’s Indigenous Peoples 2026: Theme, History and Significance

The International Day of the World’s Indigenous Peoples 2026 will be observed on August 9th…

3 hours ago

Operation Safed Sagar: How the IAF Dominated the Skies During the Kargil War

Operation Safed Sagar took place in the year 1999, which witnessed one of the most…

4 hours ago

Suraj Kumar Chand Becomes First Indian to Win FISU World University Squash Title

India's Suraj Kumar Chand as he became the first Indian to win the gold medal…

6 hours ago

FAO Food Price Index Hits 3-Year High in July 2026

Food prices in the world reached the highest mark in over three years in July…

7 hours ago