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In a pilot experiment, the RBI settles 2.75 billion rupees of government bonds using the electronic rupee

When the RBI announced the trial for CBDC in the wholesale segment on Monday, it argued that the digital rupee will increase the efficiency of the interbank market.

Mumbai: As part of a pilot, secondary market transactions involving Indian government bonds of 2.75 billion Indian rupees ($33.29 million) were settled using the central bank-backed digital rupee of the Reserve Bank of India, data on Tuesday revealed.

Data as of 4 p.m. IST (1030 GMT) showed that trades in a total of three securities — five-year 7.38% 2027 old benchmark 6.54% 2032 and the current benchmark 7.26% 2032 bonds — were settled using the new method.

Since it was the first day, a trader for a state-run bank said that some deals involving only liquid bonds were finalised using CBDC.

The RBI stated on Monday when it announced the pilot for CBDC in the wholesale segment that the e-rupee will increase the efficiency of the interbank market.

According to the RBI, “Settlement in central bank money would minimise transaction costs by avoiding the requirement for infrastructure for settlement guarantee or for collateral to limit settlement risk.”

Within a month, it intends to introduce the e-rupee for the retail market. (1 USD = 82.6230 INR) – Reuters

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