Kotak Mahindra Bank Limited (KMBL) on Thursday announced that it has implemented the first phase of the Reserve Bank of India’s (RBI) Digital Rupee (eRs). KMBL is among the eight banks shortlisted by RBI to implement a pilot project for issuance of Digital Rupee, a legal tender that is similar to bank notes and coins, issued in a digital form by RBI.
Kotak Mahindra Bank today rolled out the Central Bank Digital Currency (CBDC) to a Closed User Group (CUG) of customers, which includes retail consumers and businesses.
The bank will launch the Digital Rupee pilot in Mumbai, Delhi and Ahmedabad. Limited KMBL customers will be sent an email/SMS invite to download the Digital Rupee app. The digital rupee wallet operates in a similar fashion as a physical wallet but in a digital form, and will be accessible for download on Android operating system smartphones.
Deepak Sharma, President & Chief Digital Officer, Kotak Mahindra Bank said, “We are delighted to be a part of RBI’s initial pilot of Digital Rupee. CBDC aligns with the RBI’s vision of developing a digitally powered economy, promoting digital transactions, and reducing dependency on cash. Digital Rupee will give a huge fillip to the Government of India’s vision of Digital India and CBDC will act as a change agent for the finance ecosystem in the country.”
The RBI had announced a trial for retail digital rupee beginning 1 December, with four banks in as many cities participating in the pilot programme, a month after testing the wholesale central bank digital currency (CBDC). While it identified eight banks for gradual participation in the pilot, the first phase began with four: State Bank of India (SBI), ICICI Bank, Yes Bank and IDFC First Bank.