The Reserve Bank of India (RBI) announced Tuesday that “the first pilot for retail digital rupee (e₹-R)” will launch on Dec. 1. This announcement followed the RBI’s wholesale central bank digital currency (CBDC) pilot which began on Nov. 1.

Eight banks will participate in the retail digital currency pilot in two phases. State Bank of India, ICICI Bank, Yes Bank, and IDFC First Bank in four cities across India will participate in the first phase. Bank of Baroda, Union Bank of India, HDFC Bank, and Kotak Mahindra Bank will participate in the second phase.

The Indian central bank detailed:

The pilot would initially cover four cities, viz., Mumbai, New Delhi, Bengaluru, and Bhubaneswar, and later extend to Ahmedabad, Gangtok, Guwahati, Hyderabad, Indore, Kochi, Lucknow, Patna, and Shimla.

“The scope of [the] pilot may be expanded gradually to include more banks, users, and locations as needed,” the RBI clarified.

(By Kevin Helms)