CBDC bank list: The way we transact has evolved. First, there was the barter system, then came coins, then paper currency, and cards. In 2016, when UPI (Unified Payment System) was introduced, it brought waves capturing nearly 96% of India’s total transactions. UPI logged transactions worth Rs 13 lakh crore in January, a monthly all-time high.
At present, another digital payment method- Central Bank Digital Currency (CBDC) is likely to bring revolution in the digital payment system.
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What is CBDC?
Central Bank Digital Currency (CBDC) is a digital form of currency notes issued by central banks in alignment with their monetary policy. It appears as a liability on the central bank’s balance sheet and must be accepted as a medium of payment, legal tender, and a safe store of value by all citizens, enterprises, and government agencies.
Freely convertible against commercial bank money and cash, it is a fungible legal tender for which holders need not have a bank account. The CBDC is expected to lower the cost of the issuance of money and transactions.
The CBDC Journey
- In October last year, RBI introduced CBDC as a legal tender based on blockchain technology
- In December 2022, RBI tested the e-rupee with a pilot in the retail segment within a closed user group
- In February 2023, Reliance retail became the first organised retail store in India to accept the e-rupee
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8 banks that provide digital payment applications
- State Bank of India
- ICICI Bank
- Yes Bank
- IDFC First Bank
- Bank of Baroda
- Union Bank of India
- HDFC Bank
- Kotak Mahindra Bank
