The Reserve Bank of India (RBI) is preparing to launch a central bank digital currency (CBDC) within India’s call money market, as reported by Reuters, citing an official source. This marks a significant milestone in India’s journey toward adopting digital currencies.
The official mentioned, “RBI is now planning to enter the interbank borrowing market, specifically the call money market.”
The central bank’s vision is to utilize CBDCs as digital tokens for facilitating call money settlements within the interbank borrowing market, a crucial component of the financial system.
By introducing CBDCs into this market, the RBI aims to modernize and streamline the process of short-term borrowing and lending among banks.
Currently, the RBI’s CBDC is in the pilot phase, encompassing both the retail and wholesale sectors of the economy.
This strategic move aligns with the central bank’s goal of achieving one million CBDC transactions per day by the end of 2023.
As India continues to explore and integrate CBDCs into its financial landscape, this development underscores the country’s commitment to embracing digital innovations in its monetary systems.
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