Retail e-rupee pilot begins tomorrow: Here's what you can expect from it

The transactions using the retail CBDC can be both person-to-person as well as person-to-merchant, and payments can be made using QR codes shown at merchant locations

The Reserve Bank of India (RBI) will launch the first pilot for the retail version of the Central Bank Digital Currency (CBDC) tomorrow, December 1, exactly a month after it started a pilot for the digital rupee-wholesale segment. Let’s look at the fine print of the roll-out:

What is CBDC?

A CBDC is a legal tender issued by a central bank in a digital form. It is exchangeable at par with existing currency.

Types of CBDC

Based on the usage and functions performed by the CBDC, and considering the different levels of accessibility, it can broadly be of two types