In a notable achievement, the Reserve Bank of India (RBI) has successfully met its ambitious goal of reaching over 1 million daily transactions in the retail segment of its Central Bank Digital Currency (CBDC) by the close of 2023. The milestone underscores the growing acceptance and utilization of digital currency in the country.
Surpassing Targets: RBI’s Digital Triumph
Governor Das, in an end-of-the-year letter to RBI staff on December 29, revealed the accomplishment, stating, “We also made significant strides in usage of the e-rupee (CBDC) and exceeded the milestone of 1 million transactions in a day on December 27, 2023.” This achievement follows the RBI’s commitment to driving the adoption of digital currency and gaining insights into public usage patterns.
Setting the Bar High: Initial Challenges and Steady Growth
Last year, the RBI set an ambitious target of achieving a million daily CBDC transactions, an endeavor that faced initial challenges. Daily transactions averaged just 20,000-25,000 in July, highlighting the substantial progress made over the months. The push for higher CBDC volumes led commercial banks to incentivize users through initiatives such as cash-back offers, promoting wider adoption.
Wholesale CBDC Expansion and UPI Influence
While the retail e-rupee gained momentum, the RBI expanded the use case of the CBDC in the wholesale market, introducing it in the inter-bank call market in October. Although wholesale CBDC transactions remained relatively few, the central bank continued its efforts to explore diverse applications.
Governor Das acknowledged the international recognition of India’s Unified Payments Interface (UPI) model, emphasizing its success and impact on global practices. The UPI’s success has paved the way for the adoption of similar models globally.
Reflecting on Economic Achievements
In addition to the CBDC success, Governor Das highlighted the RBI’s effective navigation through various economic challenges in 2023. The central bank managed to moderate inflation without compromising on growth, showcasing timely and decisive actions. The letter also commended the RBI’s commitment to maintaining macroeconomic and financial stability, with regulatory and supervisory policies continuously refined to ensure a robust financial system.
As the RBI looks ahead, the call to its staff is to “find ways to improve the efficacy and quality” of service delivery, reinforcing a commitment to continuous enhancement in the digital era.
