RBI: In the first pilot trial of ‘Digital Rupee’, several banks including ICICI Bank and Bank of Baroda participated in government securities transactions on Tuesday.
Reserve Bank of India: Preparations are being made to strengthen the economy of the world on the basis of digital currency. The era of Digital Currency (E-Rupee) has started in the country. According to the announcement made in Budget 2022 (Reserve Bank of India (RBI) conducted a pilot test of the scheme. In the first pilot trial of ‘Digital Rupee’, several banks including ICICI Bank and Bank of Baroda on Tuesday To participate in transactions in Government securities.
48 deals worth Rs 275 crore done
According to sources, ICICI Bank sold GS 2027 securities to IDFC First Bank using ‘Central Bank Digital Currency’ (CBDC). He said that there were 48 deals worth Rs 275 crore with Digital Rupee. State Bank of India, Bank of Baroda and Kotak Mahindra Bank also participated in the first pilot trial of Digital Rupee (Wholesale segment).
Announced a month ago
Announcing the launch of the first pilot trial of digital rupee, RBI said that the first pilot project of digital rupee (retail segment) is planned to be started within a month. This test will be conducted in select locations among specific user groups, which include customers and businesses.
Settlement cost likely to come down
Settlement of deals in RBI’s digital currency is likely to bring down the settlement cost. CBDC is the digital form of monetary notes issued by a central bank. Central banks around the world are exploring the possibilities of introducing CBDCs. The government had announced the introduction of digital rupee in the budget of the financial year 2022-23.
How will digital currency work?
Actually, this question is in the mind of many people. Digital currency is like a voucher, which cannot be transferred. It can only be used for which it has been issued. After the issue of e-rupee voucher, it can be used only once. The e-rupee will be sent to the beneficiary’s mobile. It will be received by the beneficiary in the form of QR code or SMS.
The cost of notes will be reduced
According to RBI, it costs 15 rupees to print a 100 rupee note. One note lasts for four years. After this RBI has to print another note. Thousands of crores have to be spent in printing notes again and again. RBI had printed 4.19 lakh additional notes in the financial year 2021-22. With the introduction of digital currency, the printing of notes will have to be reduced significantly.
