The Reserve Bank of India (RBI) said it is expanding its retail digital rupee testing pilot to include more banks and expand the list of cities.
The central bank said in an annual report that it has been testing its own digital currency (CBDC) in stages.
In November 2022, RBI began testing its functionality in the wholesale segment, and in December 2022 in the retail segment.
Several more banks will join a pilot project with retail state digital currency this year: to explore more options for its use, the regulator specified.
Initially, four major Indian credit institutions participated in the digital rupee test: State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank.
Bank of Baroda, Union Bank of India, HDFC Bank and Kotak Mahindra Bank later joined the test.
In the near future, Punjab National Bank, Canara Bank, Federal Bank, Axis Bank and IndusInd Bank are ready to join the pilot project.
Central Bank of India announces that digital rupee will become available in more major cities.
Previously, its capabilities were tested by customers and vendors in Mumbai, New Delhi, Bangalore, and Bhubaneshwar.
The retail digital rupee will now be tested in Ahmedabad, Chandigarh, Gangtok, Guwahati, Hyderabad, Indore, Kochi, Lucknow, Patna and Shimla.
In March, RBI signed an agreement with the Central Bank of the UAE for cooperation in international money transfers using state-owned stabelcoins.
Their use will reduce transaction costs, regulators say.