Mumbai The Reserve Bank of India’s central bank-backed digital rupee was used to settle secondary market transactions worth 2.75 billion Indian rupees ($33.29 million) of the Indian government as part of a pilot, data showed on Tuesday.
A total of three securities trades – five-year 7.38% 2027 pre-benchmark 6.54% 2032 and current benchmark 7.26% 2032 bonds – were settled under the new route, data as of 4 a.m. IST (1030 GMT) showed.
“Since it was the first day, only a few deals were settled in liquid bonds using CBDCs,” said a trader at a state-run bank.
RBI said on Monday that the e-rupee will make the interbank market more efficient, when it announced a pilot for CBDC in the wholesale segment.
“Settlement in central bank money will reduce transaction costs by reducing the need for settlement guarantee infrastructure or collateral to mitigate settlement risk,” RBI had said.
It plans to launch e-rupee for the retail segment within a month.
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