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The Reserve Bank of India on Tuesday started a project on use of the digital rupee for settlements on the secondary market of government securities, reports TASS.
As the Business Standard newspaper reports, the use of digital rupees in test mode will occur when calculating transactions with government securities on the secondary market. It is expected that the use of the digital rupee in the segment of wholesale trade will make interbank market more efficient.
Settlements in money of the Central Bank should reduce the operational transaction costs by eliminating the need for in infrastructure of guarantees of settlements or in provision for settlements risk reduction.
For participation in the pilot project which will last one month 9 banks are engaged: The State Bank of India, Bank of Baroda, Union Bank of India and etc.
In the future, the developments of the pilot project will allow the use of digital rupees in various operations and cross-border payments.