The Reserve Bank of India (RBI) launched its first pilot for the retail version of digital rupee on December 1. The first phase of the pilot project will begin with 4 banks namely ICICI Bank, IDFC First Bank, State Bank of India and Yes Bank. Initially, the pilot would cover 4 locations – New Delhi, Mumbai, Bengaluru and Bhubaneswar. It will be later expanded to include more banks, users and locations including Ahmedabad, Guwahati, Kochi, Patna and more.
The RBI in a statement 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. It would be distributed through intermediaries, i.e., banks,”
The digital rupee would offer features similar to that of physical cash such as safety and trust. Further, the transaction can be both Person to Person and Person to Merchant.