Reserve Bank of India (RBI) Aims 1 Million Digital Rupee Users
Summary: The Reserve Bank of India (RBI) is in the middle of the Digital Rupee pilot test. The RBI plans to make CBDC QR codes compatible with India's widely used Unified Payments Interface (UPI). To transmit CBDC from one person or business to another, all that is required are the recipient's and sender's wallet addresses.
Deputy Governor T. Rabi Shankar of the Reserve Bank of India (RBI) said on June 8 following the monetary policy announcements that the RBI hopes to have one million users of the RBI’s digital currency, dubbed as the Digital Rupee.
The Reserve Bank of India (RBI) is in the middle of the Digital Rupee pilot test and has not yet specified a timetable for the national adoption of CBDC. Shankar foresaw that the growing acceptance of CBDCs would lead to a “gradual and calibrated” change in which knowledge acquisition would play a more central role.
On November 1 of last year, the Reserve Bank of India (RBI) introduced the digital version of the rupee for use in business dealings. A full month later, on December 1st, they tested the first digital rupee with the public.
More Banks and Cities Inclusion
More so, the CBDC pilot program began with a select group of customers and merchants in Mumbai, New Delhi, Bengaluru, and Bhubaneswar. As time went on, it spread to further urban centers. State Bank of India, ICICI Bank, YES Bank, and IDFC First Bank were the original members of the CBDC. New banks joined the group at a later time as well. The number of cities and banks will further increase to boost expansion.
Digital Rupee Alongside UPI
The RBI plans to make CBDC QR codes compatible with India’s widely used Unified Payments Interface (UPI), according to the RBI’s deputy governor. UPI allows for the sending and receiving of funds using a wide range of digital payment methods, such as debit/credit cards, online banking, and mobile wallets.
CBDC participants have the option of withdrawing their payments digitally and putting them into a secure wallet. To transmit CBDC from one person or business to another, all that is required are the recipient’s and sender’s wallet addresses. The RBI has a hurdle in determining how quickly individuals will adapt to this new system.