RBI to launch first pilot of retail digital rupee in 4 cities on Dec 1

The Reserve Bank will launch the first pilot for retail digital rupee (e₹-R) in Mumbai, New Delhi, Bengaluru and Bhubaneswar on December 1, and later expand it to nine more cities in the initial phase.

This follows a month after the RBI had started a pilot in the digital rupee – wholesale segment on November 1.

The Reserve Bank announces the launch of the first pilot for retail digital rupee (e₹-R) on December 1, 2022, the central bank said in a statement on Tuesday.

The first phase of retail digital rupee will begin with four banks — State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank in four cities across the country, it said.

“The e₹-R would be in the form of a digital token that represents legal tender. It would be issued in the same denominations that paper currency and coins are currently issued,” the RBI said while announcing operationalisation of Central Bank Digital Currency – Retail (e₹-R) Pilot from December 1.

CBDC is a digital form of currency notes issued by a central bank. While most central banks across the globe are exploring the issuance of CBDC, the key motivations for its issuance are specific to each country’s unique requirements.

The digital rupee would be distributed through intermediaries (banks).