The RBI’s vision is to leverage CBDCs as digital tokens for facilitating call money settlements within the interbank borrowing market, a critical component of the financial system.
The Reserve Bank of India (RBI) is set to introduce a central bank digital currency (CBDC) in the country’s call money market, reported Reuters quoting an official. This move represents a significant step in India’s digital currency journey.
“RBI is now planning to go interbank borrowing market, specifically call money market,” the official said.
The central bank’s vision is to leverage CBDCs as digital tokens for facilitating call money settlements within the interbank borrowing market, a critical component of the financial system.
By introducing CBDCs into this market, the RBI aims to streamline and modernize the process of short-term borrowing and lending among banks.
Currently, the RBI’s CBDC is undergoing a pilot phase, encompassing both the retail and wholesale segments of the economy.
This strategic move by the central bank aligns with its goal of achieving one million CBDC transactions per day by the close of 2023.
As India continues to explore and integrate CBDCs into its financial landscape, this development underscores the country’s commitment to embracing digital innovations in its monetary systems.
Source By: indiatoday
