The Reserve Bank of India (RBI) made a significant announcement on February 8, revealing plans to implement offline capability on the Central bank digital currency (CBDC) pilot project, enabling Digital eRupee users to conduct transactions even in regions with limited internet connectivity.
Governor Shaktikanta Das disclosed that the pilot project of the retail CBDC, initiated in December 2022, successfully achieved its target of facilitating 10 lakh eRupee transactions per day by December 2023. The forthcoming addition of offline functionality aims to further enhance accessibility to digital transactions across diverse geographical areas.
While highlighting the prevalence of offline possibilities in existing payment platforms like the Unified Payments Interface (UPI), Mr. Das emphasized the RBI’s proposal to introduce offline functionality specifically tailored for CBDC-R (Retail), catering to regions with poor or constrained internet access.
Moreover, the programmability aspect of the CBDC project will be expanded to encompass various additional use cases. This feature is anticipated to empower entities such as government agencies and corporates to streamline payment processes and designate specific expenditures efficiently.
The Governor underscored the potential benefits of programmability, suggesting its application in defining payment parameters, such as validity periods and geographical restrictions, thereby enhancing the flexibility and security of CBDC transactions.
In parallel to the advancements in CBDC technology, the RBI expressed its commitment to fortify the security features of Aadhaar-enabled Payment Systems (AePS). Plans to enhance the onboarding process for AePS touchpoint operators and adopt a principle-based framework for authentication of digital payment transactions signify the central bank’s proactive approach towards bolstering digital security measures.
As the RBI continues to navigate the evolving landscape of digital payments, these initiatives underscore its dedication to fostering financial inclusivity and security in the digital era.
