Reserve Bank Tests Retail Digital Rupee in Four Cities of India

The Reserve Bank of India distributed around INR 22 crores to four banks, the first day of the retail digital rupee test. ICICI Bank, IDFC First Bank, Yes Bank, and State Bank of India were the institutions that took part in the retail pilot's initial round. From a limited user group, 50,000 customers and vendors were selected to participate in these transactions.

A banker who was working on the scheme claimed that each bank had chosen merchants 15 days before the transaction day and had persuaded them to download a digital rupee QR to use for transactions. Tuesday night, banks sent SMS a subset of their consumers links to download separate bank-specific CBDC applications for transactions from the Android Play Store. Customers entered debit card information after downloading the app to create an e-wallet. The money was transferred from the customers' bank accounts in the form of tokens and added to the wallet at that point. This money was used to conduct business with merchants or other people who shared a wallet. This money can be returned to the bank account at the end of the day.

Mumbai, New Delhi, Bengaluru, and Bhubaneswar were the four cities included in the initial phase of the transactions. Trials will come later. expanded to Shimla, Hyderabad, Hyderabad, Indore, Kochi, Lucknow, Gangtok, and Patna. The second phase of the study will also include participation from four other banks: Bank of Baroda, Union Bank of India, HDFC Bank, and Kotak Mahindra Bank.

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