Central bank digital currency: Digital rupee a game changer, says SBI Chairman Dinesh Khara

SBI Chairman Dinesh Khara on Friday said the Reserve Bank's first pilot project for retail digital rupee is a "game changer" with durable effects that should ensure better monetary transmission at much lesser costs.

The pilot project for retail digital rupee, RBI's central bank digital currency (CBDC) started in Mumbai, New Delhi, Bengaluru and Bhubaneswar on Thursday and State Bank of India (SBI) is one of the participating banks.

The retail digital rupee (e₹-R) project has started in a closed user group with the participation of four lenders -- State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank -- as well as customers and merchants.

TRENDING NOW

RVNL, Titagarh Systems, Raymonds: Stocks to watch out for on Wednesday

Google Pixel 8 Launch 2023: Check date, time, expected new features, and price

Fundraising via bonds on private placement surges 73% to Rs 3.3 lakh crore in Apr-Aug

Strong tremors in Delhi-NCR after 6.2 magnitude earthquake in Nepal

Hero MotoCorp Harley-Davidson X440 price in India top speed mileage booking seat height engine delivery date

World Bank estimates Indian economy to grow at 6.3% in FY24; predicts service sector activity to grow at 7.4%

Coal production rose 16% year-on-year to 67.21 million tonnes in September

Centre may come up with action plan next week to tame red-hot inflation

Buzzing stocks: RVNL, JSW Infrastructure, Coal India, among 10 stocks that saw action today

IND vs NED Free Live Streaming: When and How to Watch India vs Netherlands ODI World Cup 2023 warm-up Match Live on Web, TV, mobile apps online

ICC World Cup 2023 Opening Ceremony: Event called off, or still on? Here's all we know

Senior Citizen Savings Scheme (SCSS): Know how much return you will get on investment from Rs 1 to Rs 15 lakh in SCSS

4.7 magnitude earthquake hits Afghanistan's Fayzabad

JSW Infrastructure makes strong debut at Dalal Street, shares list at 20% premium

Jumeirah Group eyes growth in hotel visitors from India

"RBI's pilot project on retail-CBDC is a game changer with durable effects that should ensure better monetary transmission at much lesser costs. The anonymity factor is critical for its acceptance. It collaborates, complements and completes the currency architecture in vogue, while also incubating further innovation," Khare said in a statement.

In the second phase of retail digital rupee project, nine more cities and four more banks will be included.

Also Read: Central Bank Digital Currency launch: 5 key differences between UPI and e-Rupi - Explained

The e₹-R is in the form of a digital token that represents legal tender and would offer "features of physical cash like trust, safety and settlement finality", according to the RBI.

"As in the case of cash, it will not earn any interest and can be converted to other forms of money, like deposits with banks," the central bank said while announcing the pilot project on November 29.

The use of digital rupee is also expected to reduce the operational costs related to management of physical currency as well as increase financial inclusion in the economy.

The launch of digital rupee comes almost a month after the Reserve Bank of India (RBI) started a pilot in the digital rupee - wholesale on November 1.