RBI set to launch pilot for deposit tokenisation in bank-to-bank dealings - The Economic Times
The Reserve Bank of India (RBI) is preparing to launch a pilot project for deposit tokenisation, aiming to transform the way bank deposits are managed and transferred. This initiative is part of RBI’s broader plan to explore digital innovations in India’s financial ecosystem. Through deposit tokenisation, physical deposits will be converted into digital tokens, allowing seamless transactions between banks while ensuring higher security and faster settlements. The move aligns with the central bank’s digital currency roadmap and could enhance efficiency in payment systems. Major banks are expected to participate in the pilot phase, testing real-world applications before a wider rollout. If successful, the tokenised deposit model could simplify fund transfers, reduce operational risks, and promote transparency in the banking sector. The RBI’s initiative marks another significant step toward India’s digital financial transformation and the modernization of traditional banking operations.
The Key points
- RBI to launch a pilot for deposit tokenisation.
- Initiative aims to digitize traditional bank deposits.
- Tokens will represent deposit value digitally.
- Enhances transaction security and settlement speed.
- Aligns with RBI’s digital currency development goals.
- Major Indian banks to join the pilot phase.
- Enables real-time interbank fund transfers.
- Reduces operational risks and fraud possibilities.
- Promotes transparency in digital banking systems.
- A key step toward India’s financial digitalization journey.
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