The Reserve Bank of India is in discussions with fintech companies and state-controlled banks about a trial run of a central bank digital currency. An unnamed public sector bank official had stated that the trial may precede an RBI launch of a CBDC this fiscal year.
U.S.-based financial services company FIS was mentioned as one of the fintech companies with which the RBI is consulting. FIS senior director Julia Demidova confirmed that, FIS has had various engagements with the RBI and connected ecosystem could be extended to the RBI to experiment various CBDC options.
The RBI is reportedly also in talks with public sector banks State Bank of India, Punjab National Bank, Union Bank of India and Bank of Baroda on participating in the trial. The government owns at least a 50% share in those banks.
The RBI has long stated that it was looking at a phased implementation of a CBDC, most recently saying that an Indian CBDC would be introduced in three steps in 2022 and 2023. Indian finance minister Nirmala Sitharaman has spoken favourably about the influence a CBDC would have on the country’s economic growth.
