India's central bank digital currency (CBDC) transactions achieved a significant milestone by exceeding one million daily transactions on December 27, subsequently reaching a peak of over two million in a single day. The Reserve Bank of India (RBI), amidst the ongoing pilot stage of the CBDC, had initially set a target of one million transactions per day for 2023. Remarkably, this target has not only been met but surpassed, prompting anticipation of a formal announcement once stability is ensured around the million mark.
Major banks such as SBI, Canara Bank, IDFC India First, ICICI Bank, and Kotak Mahindra Bank have witnessed a substantial volume of CBDC transactions. The pilot, initiated in December 2022 with SBI and IDFC First Bank, gradually expanded to include more banks as the project stabilized. Recent weeks have seen state-run banks utilizing the e-rupee for employee benefits, contributing to the surge in transactions.
RBI stands among a select group of central banks globally experimenting with CBDC, and India's project is notably advancing swiftly. Initially focused on wholesale CBDC in government securities, the pilot has expanded to the call money market, marking a significant stride in the development of retail e-rupee.
Governor Shaktikanta Das and his deputies emphasize a lack of a strict deadline for completing the pilot, prioritizing the incorporation of learnings from the trial into the final design. Since the demonetization of high currency notes in November 2016, India has experienced rapid growth in digital payments through UPI and other tools. The introduction of e-rupee as a CBDC is positioned as an additional payment option, addressing user concerns about transitioning from existing electronic payment methods.
