Reserve Bank starts pilot digital currency program for select banks

Banks traded Rs 275 crore ($33.3 million) of bonds on the first day using the new form of currency, data showed

India’s central bank started a pilot program of its digital currency Tuesday, allowing select banks to use it for settling secondary-market transactions in government securities. 

Banks traded Rs 275 crore ($33.3 million) of bonds on the first day using the new form of currency, data from Clearing Corp. of India Ltd. showed. Nine participating banks executed 24 trades worth 1.4 billion rupees in 7.38 per cent 2027 bond, 23 trades totaling 1.3 billion rupees in 7.26 per cent 2032 bonds and one transaction in 6.54 per cent 2032 bond. 

The e-rupee will be tested for retail use within a month in some