New Delhi: The Reserve Bank of India (RBI) has announced plans to introduce offline functionality for e-RUPI transactions, allowing digital rupee users to conduct transactions even in areas with limited internet connectivity. This move is set to enhance accessibility and usability of the Central bank digital currency (CBDC). CBDC is a pilot project of RBI which was launched in December 2022.
Governor Shaktikanta Das revealed that the upcoming enhancements will include programmability-based additional use cases as part of the ongoing pilot project. Since its launch, the retail CBDC has seen significant progress, achieving a milestone of 10 lakh transactions per day by December 2023.
While acknowledging the existing offline capabilities of popular payment platforms like the Unified Payments Interface (UPI), Shaktikanta Das emphasized the need to extend similar functionalities to CBDC transactions. He announced the RBI’s proposal to introduce offline functionality specifically for CBDC-R (Retail) transactions to facilitate seamless transactions in areas with poor or limited internet connectivity.
Shaktikanta Das highlighted that various offline solutions, both proximity and non-proximity-based, will undergo testing across diverse geographical areas including hilly terrains, rural regions, and urban centers to ensure effectiveness.
Furthermore, the programmability aspect of the CBDC will be expanded to enable additional use cases, allowing entities such as government agencies and corporates to customize transactions for defined purposes. This feature will facilitate targeted payments for benefits and specified expenditures, such as business travel expenses, thus enhancing efficiency and control.
Additionally, features like validity periods and geographical usage restrictions can be programmed into the CBDC, providing further flexibility and security in its utilization.
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