Reserve Bank of India Eyes 1 Million Users of Digital Rupee

• RBI launched a digital form of the rupee on November 1 of last year.
• The CBDC pilot program was launched with a small number of clients and retailers in 4 cities.

Reserve Bank of India (RBI) Deputy Governor T. Rabi Shankar remarked on Thursday, June 8 after the monetary policy announcements that the RBI aims to reach one million users of the RBI’s digital currency, also known as the Digital Rupee.

Keep in mind that the Reserve Bank of India (RBI) is currently in the midst of the Digital Rupee pilot test and has not yet set a date for the nationwide implementation of CBDC. Shankar predicted that the increasing popularity of CBDCs would bring about a “gradual and calibrated” shift in which the emphasis would be placed primarily on assimilating knowledge.

Also. the Reserve Bank of India (RBI) launched a digital form of the rupee on November 1 of last year, designed for use in commercial transactions. On December 1st, a full month later, they trialed the first digital rupee with the general public.

QR Codes Compatible

Furthermore, the CBDC pilot program launched with a small number of clients and retailers in Mumbai, New Delhi, Bengaluru, and Bhubaneswar. It eventually was further expanded to other cities.

Moreover, the State Bank of India, ICICI Bank, YES Bank, and IDFC First Bank were the only participating institutions in the CBDC from the outset. There was a later influx of new members as well.

According to the RBI’s deputy governor, Mint Road intends to make CBDC QR codes compatible with India’s widely used Unified Payments Interface (UPI). Payments may be made via UPI and received in a variety of digital formats, including but not limited to debit/credit cards, online banking, and mobile wallets.

CBDC recipients may withdraw digital funds and store them safely in a wallet. When sending CBDC from one person or store to another, the transaction will take place directly between the two wallets, without the need for a central bank. How far people adopt to this new method will be a challenge for the RBI.