The e₹-R will be made available in digital token format. Credit: ΛΖΞ from Pixabay.

The Reserve Bank of India (RBI) is set to introduce the first pilot to test the use of retail digital rupee (e₹-R) on 1 December 2022.

The pilot will be carried out in selected locations in closed user group (CUG) that includes both customers and merchants.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Once developed, the e₹-R will be made available in digital token format that signifies legal tender.

The digital rupee will feature the same denominations of the existing paper currency and coins. It will be circulated using intermediaries, including banks.  

As part of the pilot, the sustainability of the whole process of creation, distribution and retail usage of digital rupee in real time will be tested.

The pilot will see the participation of altogether eight banks in a phased manner.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

In the first phase, four banks, including State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank, will take part. It will be carried out in four Indian cities, Mumbai, New Delhi, Bengaluru and Bhubaneswar.

In later phases, Ahmedabad, Gangtok, Guwahati, Hyderabad, Indore, Kochi, Lucknow, Patna and Shimla will be added to conduct the pilot, stated RBI.

RBI plans to examine other features and applications of the e₹-R token in future pilots.

The latest development comes shortly after RBI revealed a plan to launch a limited pilot to study the use of e₹ for specific purposes.

RBI said in a statement: “Users will be able to transact with e₹-R through a digital wallet offered by the participating banks and stored on mobile phones/devices.

“Transactions can be both person to person (P2P) and person to merchant (P2M).

“Payments to merchants can be made using QR codes displayed at merchant locations. The e₹-R would offer features of physical cash like trust, safety and settlement finality.”