RBI Clarifies Timelines for CBDC Pilot Launch

The Reserve Bank of India (RBI) could conduct a pilot launch of the central bank digital currency (CBDC) in the first quarter of fiscal year 2022, said a senior official of the institution. This was reported by Business Standard.

At the State Bank of India’s annual Banking & Economic Conclave, the head of RBI’s Payments and Settlements Department, P. Vasudevan, said:

“It seems there was talk that the pilot could be launched by the first quarter of next year. So we are optimistic.”

The Indian financial year begins on April 1.

Earlier, RBI Governor Shaktikanta Das predicted the test launch of the digital currency by December 2021.

“We are at work and studying the various issues and nuances related to the CBDC. You cannot simply say that it will become commonplace from tomorrow,” said P. Vasudevan.

According to him, the department is trying to determine which segment the CBDC should target—wholesale or retail—as well as the mechanism for transaction verification and the channels for distributing the digital currency.

“The central bank is also examining whether it is even possible to bypass intermediaries, and, most importantly, whether the technology should be fully decentralised or not,” the official added.

Earlier, in July, the RBI said that are developing a strategy for the phased deployment of CBDC and its rollout in wholesale and retail segments.

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