RBI proposed support for distribution of CBDC through non-bank payment operators

Several countries, including India, are ramping up central bank digital currency (CBDC) trials, hoping to integrate them with their existing financial systems. The Reserve Bank of India has proposed expanding support for the digital rupee CBDC within the retail ecosystem beyond banks. In the coming days, the RBI is expected to start circulation of digital rupees through payment system operators that are not part of the banking system. The details were revealed in a statement by RBI Chief General Manager Yogesh Dayal on Friday.

So far, of India CBDC The distribution was being done through banks that are part of its trials. Going forward, however, the RBI is likely to allow the platform. Google Pay And Phone p Also for the distribution of digital rupees in the retail ecosystem.

CBDC pilots in the retail and wholesale segments are underway with more use cases and more participating banks. Continuing with this approach, it is proposed to make CBDC-retail accessible to a wider segment of consumers in a sustainable manner by enabling non-bank payment system operators to offer CBDC wallets,” Dayal said. said In a prepared statement issued by the RBI.

CBDCs are virtual representations of a country’s fiat currency. Built on blockchain networks, they work like cryptocurrencies but are issued by a central bank. Through CBDCs, people can process instant payments of huge amounts and all transaction history will be stored in a consistent, immutable format.

“This is expected to test the flexibility of the CBDC platform to handle multi-channel transactions, increase access and expand the choice available to consumers. Necessary system changes will be made to facilitate this. ,” the official said in the statement.

Since December 2022, RBI has done an impressive feat in research and development around digital rupee. CBDC is currently in an advanced trial phase in India.

In February this year, the RBI had talked about its plans to experiment. Offline solution To adopt CBDC in parts of India which are not connected to internet like developed cities.

In 2023, State Bank of India Introduced UPI interoperability With digital Rs. Canara Bank also made a similar offer.

“As per data published in Reserve Bank of India’s balance sheet as on March 31, 2023, e-rupees for CBDC (retail) were issued at Rs 5.70 crore,” the RBI had said. described Responding to an RTI appeal in February

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