On Day 1, the Indian CBDC recorded 48 transactions totaling INR 275 billion

On Day 1, the Indian CBDC recorded 48 transactions totaling INR 275 billion

Published May 5, 2021
2 min read

On November 1, 2022, the Reserve Bank of India began the central bank digital currency (CBDC) trial, and on that day, G-Sec trades totaling INR 275 Cr were executed. 48 trades were resolved via CBDC, according to statistics released by the Clearing Corporation of India Limited (CCIL). Of these, 24 agreements with 7.38% yield securities and 23 deals with 7.26% yield securities will maturity in 2027 and 2032, respectively. On the 6.54% asset with a 2032 maturity and a 7.45% yield, one deal was completed.

In order to avoid the requirement for infrastructure to provide settlement guarantees or for collateral to decrease settlement risk, the RBI had stated that settlement in central bank money would lower transaction costs. Nine banks have been chosen to participate in the pilot project, according to the RBI: State Bank of India (SBI), Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank, and HSBC.

CBDC is a central bank-issued digital version of currency notes.The launch of the Digital Rupee for the fiscal year 2022–2023 was announced by the government in the Union Budget that was presented to Parliament in February of this year. More than 60 central banks have expressed interest in CBDCs globally, and some have introduced them as part of trial initiatives in the retail and wholesale sectors. Numerous other people are developing, evaluating, and/or introducing their own CBDC framework.

Even more so, IDFC First Bank acknowledged that it executed the first CBDC transactions for Rs 5 crore. The first secondary market transaction involving government assets to use CBDC settlement was carried out today by IDFC First Bank. According to Piyush Wadhwa, head of financial markets and treasury at IDFC First Bank, "We are one of the few institutions participating in the RBI's pilot project on digital rupee with the settlement of G-Sec transactions as the use case.

According to the website of the Clearing Corporation of India, the transactions were made in three different types of government bonds: the most liquid five-year security, the prior 10-year bond, and the current benchmark 10-year bond (CCIL).

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