PhonePe, Google Pay, and Other Companies to Participate in RBI's Digital Currency Pilot
By MYBRANDBOOK
Big fintech companies are now choosing to participate in the digital currency pilot program run by the Indian central bank, including GooglePay, PhonePe, Cred, Mobikwik, and AmazonPay. The companies plan to accomplish this by enabling e-rupee transactions. At first, e-rupee could only be obtained through the central bank's mobile applications. However, the RBI permitted fintechs to offer e-rupee transactions in April, but only with its consent.
Initially, only the central bank was allowed to offer e-rupee via their mobile applications. However, following RBI’s directive in April this year, fintechs were also allowed to offer e-rupee transactions after its approval.
Following this, the fintech startups were reported to be seeking more clarity from the central bank on the rules of engagement with banks to deploy central bank digital currency (CBDC) use cases.
The Reuters’ report further outlined that these fintech companies are working closely with the RBI, National Payment Corporation of India (NPCI), and the domestic payment authority and are expected to launch access to the e-rupee over the next three to four months.
The report added that digital currency transactions have declined sharply to 1-2 Lakh transactions a day from registering over 1 Mn transactions a day last year. Alongside this, the other source told Reuters that the central bank has no immediate plans to do a full-scale launch of the digital currency.
The developments come at a time when banks are reportedly engaging with various fintech startups at various levels to deploy use cases for retail CBDCs. Notably, two major use cases are being tested in the first phase of the CBDC retail pilot for NBPSOs. While the first one includes subsidy payments for farm inputs, the second use case is around corporate expense management.
It is these use cases that the banks are currently working to deploy and they will now also work closely with fintech startups to fuel the CBDC pilot. In April, RBI deputy governor T Rabi Sankar said that 2.2 Cr transactions have been processed since the launch of the central bank digital currency (CBDC) pilot in December 2022.
Sankar said 46 Lakh users and 4 Lakh merchants were currently transacting in CBDC, adding that the transaction volumes were shifting from P2P (peer-to-peer) to P2M (peer-to-merchants) owing to the availability of more merchants accepting the Digital Rupee.
SEBI strengthens mutual fund regulations to combat insider tra
In order to combat front-running and insider trading, capital market regula...
NPCI in discussion for introducing biometric authentication fo
The National Payments Corporation of India (NPCI) is reportedly in talks ...
ED charges ex-MP Ishwarlal Jain and his son in bank fraud case
A prosecution complaint has been filed by the Enforcement Directorate (ED)...
DTDC launches drone delivery services
DTDC Express is celebrating its 35th anniversary with the launch of drone-...
ICONS OF INDIA : RITESH AGARWAL
Ritesh Agarwal is an Indian billionaire entrepreneur and the founder a...
ICONS OF INDIA : ROSHNI NADAR MALHOTRA
Roshni Nadar Malhotra is the Chairperson of HCLTech, a leading global ...
ICONS OF INDIA : S KRISHNAN
S Krishnan as the secretary for the electronics and information techno...
ECIL - Electronics Corporation of India Limited
ECIL is distinguished by its diverse technological capabilities and it...
STPI - Software Technology Parks of India
STPI promotes and facilitates the growth of the IT and ITES industry i...
C-DOT - Center of Development of Telematics
India’s premier research and development center focused on telecommu...
Indian Tech Talent Excelling The Tech World - Soni Jiandani, Co-Founder- Pensando Systems
Soni Jiandani, Co-Founder of Pensando Systems, is a tech visionary ren...
Indian Tech Talent Excelling The Tech World - ARVIND KRISHNA, CEO – IBM
Arvind Krishna, an Indian-American business executive, serves as the C...
Indian Tech Talent Excelling The Tech World - George Kurian, CEO, Netapp
George Kurian, the CEO of global data storage and management services ...