Bombay:
The Reserve Bank Of India (RBI) itself will follow up its wholesale e-rupee pilot this month with a similar trial on the retail side, Governor Shaktikanta Das said today.
He cited the launch of the central bank’s digital currency (CBDC), which began Tuesday on the wholesale front between a limited number of banks, as a milestone in the history of currencies in the country, adding that it is the way of doing business. to do.
“The retail portion of the CBDC trial will be launched later this month. We will announce the date separately,” he said, speaking at the annual FIBAC bankers conference here.
The wider desire of the RBI is to conduct a full-fledged launch of the CBDC “in the near future,” said Shaktikanta Das, who chose not to share a timeline for it.
“I don’t want to give a target date when the CBDC will be launched at full scale, because this is something we have to be very careful about. This is the world’s first time doing it. I don’t want to be in a rush,” he said.
There will be some technological challenges, some process challenges, and the RBI will want to smooth out all those aspects and introduce the CBDC in a non-disruptive way, he said.
Meanwhile, the governor also spoke about the experience of the pilot project on digitization of agricultural loans and added that the RBI wants to start providing loans to small businesses in 2023.
The lessons and experiences of the end-to-end digital KCC (kisan credit card) loan pilot, currently taking place in Madhya Pradesh and Tamil Nadu, would be internalized before expanding the small business initiative, he said.
Shaktikanta Das said that in the case of the end-to-end digital KCC loans, a bank processes data from the credit rating agencies, uses artificial intelligence to process satellite data to analyze a farmer’s land and what has happened in previous years. that land was cultivated.
The documentation process is also simple and the farmer has to visit a bank branch a minimum number of times, Shaktikanta Das said.
The RBI is working closely with banks on the initiative, he said, adding that banks must also upgrade their technology infrastructure to enable such a project.
He said two more banks will begin extending the digital loans for farmers very soon, joining the initiative with the Federal Bank and the state-run Central Bank of India.
The governor said state governments must fully digitize their land registrations and title verification process for the scheme to function smoothly.
(Except for the headline, this story has not been edited by DailyExpertNews staff and has been published from a syndicated feed.)
Featured video of the day
Rahul Gandhi Rushes to Help When Women Trip During ‘Bharat Jodo Yatra’