RBI plans to introduce CBDC in call money market, aims to showcase its digital products at G20

The Reserve Bank of India (RBI) is set to revolutionise the Indian financial landscape by integrating Central Bank Digital Currency (CBDC) into the call money market, marking a significant step towards digital financial innovation. Furthermore, India aims to showcase its digital prowess on the global stage during the G20 leadership summit, emphasising the internationalisation of its payment systems.

As revealed by a senior official, the central bank planning to allow the use of Central Bank Digital Currency (CBDC) in the call money market. This strategic move reflects India's commitment to modernise its financial ecosystem by harnessing the power of CBDC technology.

CBDC pilot progress

India's CBDC is currently undergoing a pilot phase in both retail and wholesale segments, with a target of achieving one million transactions per day by the end of 2023. CBDC's integration in government bond transactions commenced in November of the previous year, demonstrating the central bank's commitment to exploring innovative payment solutions.

Current UPI acceptance

India aims to elevate the global acceptance of its digital payment systems, including the Unified Payments Interface (UPI) and Rupay cards. Discussions and negotiations are underway with numerous countries, extending beyond India's traditional regional partners to encompass nations in Latin America and Africa. The goal is to make UPI a universally recognised payment product accessible in countries worldwide.

As of now, countries like Singapore, United Arab Emirates, France, the UK, Saudi Arabia, Bahrain, Maldives, Bhutan, and Oman already allow Indians to make payments using UPI, highlighting the growing global reach of India's digital financial products.

Digital showcase at G20

RBI will present an array of digital initiatives in the financial sector at the G20 Summit's exhibition pavilion. These include the Public Tech Platform (PTP) for Frictionless Credit, CBDC, UPI One World, RuPay On-The-Go, and the Bharat Bill Payment System. This platform provides India with the opportunity to showcase its technological advancements on the international stage.

The RBI's decision to introduce CBDC in the call money market and its efforts to expand the global footprint of UPI and Rupay signify India's commitment to fostering a digital-first financial ecosystem. By participating in the G20 Summit, India aims to position itself as a leading innovator in the digital finance sphere, showcasing its cutting-edge solutions to the world.