RBI Hits One Million Daily Transactions Target With Retail Central Bank Digital Currency By 2023 End

The Reserve Bank of India (RBI) has successfully achieved its target of reaching one million daily transactions in the retail segment of its Central Bank Digital Currency (CBDC) by the close of 2023 as reported by Moneycontrol.

RBI Governor Shaktikanta Das shared in an end-of-the-year letter to RBI staff on 29 December that the milestone of one million transactions in a day was surpassed on 27 December 2023.

The RBI had set this ambitious target, with earlier reports in September 2023 indicating daily transactions averaging 20,000-25,000 in July.

Although specific retail CBDC transaction data is not publicly available, the central bank has been actively promoting the use of the retail e-rupee since launching the pilot project on 1 December 2022. Commercial banks have even offered incentives like cash-backs to boost the adoption of the retail CBDC and attract new users.

On the wholesale front, the RBI has sought to broaden the use cases for CBDC and introduced it in the inter-bank call market in October.

However, the number of wholesale CBDC transactions has been limited, but the RBI remains undeterred.

Governor Shaktikanta Das also highlighted the international emulation of the Unified Payments Interface (UPI) model's success.

Regarding the economy, the governor stated that the RBI effectively navigated various challenges in 2023.

"On the monetary policy front, we have managed to moderate inflation while not losing focus on growth. Our actions were timely and decisive," noted the governor's letter.

He also emphasised that the RBI achieved new heights in maintaining macroeconomic and financial stability, fine-tuning regulatory and supervisory policies for a robust financial system. The letter encouraged RBI staff to continually enhance the efficacy and quality of their service delivery.