RBI

RBI sets CBDC growth goals for banks, aims for 1 million daily transactions by December

By December, the Reserve Bank of India (RBI) hopes to record one million daily transactions in the eRupee, India's CBDC that is now undergoing testing. According to reports, the RBI is setting objectives for banks to enable a minimum number of transactions in the eRupee to increase the number of CBDC transactions. India has been working on its CBDC plan for at least two years. The nation's first national digital currency was introduced into its pilot phase for testing last year.

According to reports, Indian banks have maintained their belief that the eRupee CBDC may only have a small number of applications because online payments are being made digitally using the country's widely used UPI system. According to a report by the Mint on Monday, banks will now comply with RBI instructions to make sure that only a small group of consumers may handle eRupee tractions for everyday transactions.

Once the banks fulfill their benchmarks, they will be eligible for government-approved bonuses.

Gadgets 360 has contacted the RBI for more information on the development.

CBDCs operate similarly to cryptocurrencies, except they are regulated and issued by central banks. Digital currencies not only make online payment systems more efficient, but they also eliminate reliance on currency notes.

The eRupee CBDC is being loaded with the capacity to communicate with current UPI QR codes in India as part of its ongoing experiments. This would allow its test users to make payments using this digital money by scanning QR codes already in use.

According to RBI deputy governor T Rabi Sankar, as of June 2023, CBDC transactions were handled by 1.3 million clients and 0.3 million businesses.

According to a survey performed earlier this year by the Bank for International Settlements (BIS), over two dozen central banks from developing and developed countries are expected to have digital currencies in circulation by the end of the decade.