RBI to launch e-rupee on pilot basis, releases concept note

The Reserve Bank on Friday (October 7) said it will soon commence the pilot launch of e-rupee for specific use cases as it tests digital currency in India.

“As the extent and scope of such pilot launches expand, RBI will continue to communicate about the specific features and benefits of e-rupee, from time to time,” RBI said in a concept note on Central Bank Digital Currency (CBDC).

“It is the responsibility of central bank to provide its citizens with a risk free central bank digital money which will provide the users the same experience of dealing in currency in digital form, without any risks associated with private cryptocurrencies,” the RBI said.

The central bank also said that it will consider both retail and digital currency.

The concept note also discusses key considerations such as technology and design choices, possible uses of the digital rupee, and issuance mechanisms, among others.

It examines the implications of the introduction of CBDC on the banking system, monetary policy, and financial stability, and analyses privacy issues.

The Centre in February had said that it will launch a digital currency in the current financial year.

(With inputs from agencies)