 "IndusInd Bank successfully executes RBI's programmable CBDC pilot")
IndusInd Bank on Monday announced the successful execution of the Reserve Bank of India’s programmable Central Bank Digital Currency (CBDC) pilot, marking the first such instance by any bank.
The pilot project, done in collaboration with Circularity Innovation Hub India Private Limited (CIH), involved an alternate form of CBDC wherein the bank can program the end use of funds, specifically targeting farmers for carbon credit generation.
As a part of this pilot, IndusInd Bank initiated the programmable CBDC disbursement to 50 farmers in Ratnagiri district of Maharashtra and will cover around 1,000 farmers going ahead, marking a milestone in the adoption of innovative financial solutions for the agriculture sector.
“This project involves IndusInd Bank crafting digital wallets and managing CBDC transfers, alongside partners including CIH, which is a sponsor agency for this project and a climate-tech company building circular economy business models around all-things-waste not only to recycle it but also repurpose it as energy or by-product, thus generating the first-of-its-kind Circularity Credits,” the company said.
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Additionally, Hindustan Agro and Jackfruit King Company spearheaded farmer engagement, linking sustainable practices to additional revenue streams, while Navi Mumbai-based Emertech Innovations developed a Blockchain-backed platform to provide end-to-end traceability and transparency in the generation of revenues from Circularity Credits and its traceable disbursement. This collaborative effort aims to promote Circularity Credits from recycling agricultural waste. CIH, IndusInd Bank, and partners aim to scale the pilot into a nationwide initiative benefiting farmers.
“We take immense pride in this pivotal role in driving the programmable CBDC by the Reserve Bank of India. Collaborating with CIH and other stakeholders, we are excited to drive positive change in the agriculture sector and beyond,” said Sumant Kathpalia, managing director & chief executive of IndusInd Bank.
“This collaboration reflects our commitment to advancing both economic growth and environmental sustainability. Together, we are committed to leveraging innovative solutions to empower communities and build a brighter future for all,” Kathpalia said.
“In our efforts to positively contribute towards climate change, we aim to increase the income of the farmer; our goal is to ‘give back to the hand that gives’,” said Joel Michael, founder and chief executive of Circularity Innovation Hub (CIH).
I am proud to be able to be a part of facilitating such a groundbreaking initiative in India that helps the farmers of this country. The farmers are our backbone and this initiative sets an example in the right direction of social and environmental impact,” said Bharat Dhokane Patil, executive chairman of Hindustan Agro.