The Reserve Bank of India (RBI) will soon start piloting the central bank-backed digital rupee for specific use cases. This is what the RBI said in a circular published on Friday. Reuters news.
The RBI has been exploring the pros and cons of a central bank digital currency for some time and is working on a phased implementation strategy, it said.
The RBI said that the use of e-rupees is being examined in such a way that there is minimal disruption to the financial system. The final design in this regard will be released only after conducting large-scale pilot projects.
According to the notification published on Friday, the digital currency will be referred to as e-Rupee and will provide additional options for all available currencies.
Cash-reliant India is joining other countries, including China, in moving to digital versions of their currencies as they look to use new technologies to make transactions and payments more efficient.
India’s Finance Minister Nirmala Sitharaman said in her budget speech in February that the RBI would launch a digital currency this year.
(09 October)