The RBI Issues a Press Release for the Launch of the First Pilot for Retail Digital Rupee (e₹-R)

On 29th November 2022, the Reserve Bank of India (RBI) issued a Press Release in regard to the Operationalization of the Central Bank Digital Currency – Retail (e₹-R) Pilot. The RBI has announced the launch of the first pilot for retail digital Rupee (e₹-R) on 01st December 2022. Earlier, the RBI had issued a Press Release on 31st October 2022, indicating that the pilot in e₹-R was to commence in a month’s duration.

The pilot is said to cover select locations in a Closed User Group (CUG) that comprises participating merchants and customers. The e₹-R is in a digital format which represents legal tender. The denominations are the same as the paper currency and coins that are currently being issued, which are to be distributed through intermediaries, i.e., banks. The users can transact with e₹-R via digital wallets that are to be offered by the participating banks and can be stored on digital devices such as mobile phones.