For a trial project involving its digital currency, the Digital Rupee, for the retail market, the RBI has enlisted at least five institutions. The Economic Times said that these banks include State Bank of India, ICICI Bank, IDFC First Bank, HDFC Bank, and Yes Bank. The Reserve Bank of India may add more banks to operate the pilot, which is anticipated to debut soon, according to the article, which cited people with knowledge of the situation.
The central bank digital currency (CBDC) is being tested by the RBI on two fronts: one for the wholesale sector, where a pilot project is already in progress, and the other for the retail market (CBDC-R).Additionally, the central banker is debating whether to create a new framework for its digital currency or enable retail CBDC to function using the current digital payments infrastructure.
Last month, the RBI said in a concept note that it was thinking of giving CBDC retail purchases under Rs 50,000 the same level of anonymity that customers have when making small cash payments.