Lok Sabha Question No. 487 (UNSTARRED), answered on 2023-02-06
Subject: Trial of Digital Currency
Ministry: FINANCE
Asked by: Jaisiddeshwar Shivacharya Mahaswamiji, L.S. Tejasvi Surya, Dr. T. Sumathy (a) Thamizhachi Thangapandian, Anurag Sharma, Umesh G. Jadhav, Sanganna Amarappa Karadi, Prathap Simha

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS LOK SABHA UNSTARRED QUESTION NO.487 TO BE ANSWERED ON 06.02.2023

## Trial of Digital Currency

487. SHRI SHA. BRA. DR. JAI SIDDESHWAR SHIVACHARYA MAHASWAMIJI: SHRI L.S. TEJASVI SURYA: DR. T. SUMATHY (a) THAMIZHACHI THANGAPANDIAN: SHRI ANURAG SHARMA: DR. UMESH G. JADHAV: SHRI SANGANNA AMARAPPA: SHRI PRATHAP SIMHA:

## Will the Minister of FINANCE

be pleased to state:

(a) whether  the RBI  has  started trials of the retail Central  Bank  Digital  Currency (CBDC)/Digital  Currency  in  four  big  Indian  cities  and  if  so,  the  details  and  the  salient features thereof;

(b) whether the RBI has selected any bank for the operationalisation of the said trials and if so, the details thereof;

(c) whether those selected banks have chosen any individuals/account holders for the trials and if so, the details thereof;

(d) whether it is required for the customer to create a separate e-wallet for the usage of the CBDC and if so, the details thereof and the reasons therefor in view of already existing UPIbased wallet; and

(e) whether the Government  has any plans to make  digital currencies merge and interchangeable and if so, the details thereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

(a): RBI has launched the first pilot of Digital Rupee- Retail segment (e₹-R) on December 01,  2022.  The  pilot  is  covering  select  locations  in  closed  user  group  (CUG)  comprising participating  customers  and  merchants.  The  e₹-R  pilot  currently  covers  the  five  cities  of Mumbai, New Delhi, Bengaluru, Bhubaneswar and Chandigarh. The e₹-R is in the form of a digital token that represents legal tender. It is being issued in the same denominations that paper currency and coins are currently issued. It is being distributed through financial intermediaries, i.e., banks. The e₹-R offers features of physical cash like trust, safety and settlement finality. As in the case of cash, it will not earn any interest and can be converted to other forms of money, like deposits with banks.

(b) & (c): RBI has identified eight banks for phase-wise participation in the retail pilot project. These include the State Bank of India, the ICICI Bank, the Yes Bank and the IDFC First  Bank,  the  Bank  of  Baroda,  the  Union  Bank  of  India,  the  HDFC  Bank  and  the  Kotak Mahindra  Bank.  The  participating  banks  have  selected  individuals/account  holders  for  the trials.

(d): A separate e₹ wallet has been conceived in the pilot considering that e₹ forms part of the currency system while other digital wallets form part of the payments system. Users will be able to transact with e₹-R through a digital wallet offered by the participating banks and stored on mobile phones / devices.

(e): The Reserve Bank of India issues only one digital currency on behalf of Government of India,-Central Bank Digital currency (CBDC), which is a liability of the Central Bank,.

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