The RBI has said that the Central Bank Digital Currency (CBDC) pilot is being expanded to include more banks. 

The first pilot in the Digital Rupee-Wholesale Segment (e rupee-W) had commenced on November 1, 2022. It was followed by the first pilot for retail digital rupee (e rupee-R) that was announced on December 1, 2022. 

The pilot began with four banks – State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank – while four other banks – Bank of Baroda, Union Bank of India, HDFC Bank and Kotak Mahindra Bank joined subsequently. Five more banks, namely Punjab National Bank, Canara Bank, Federal Bank, Axis Bank and IndusInd Bank are in the process of joining the pilot.

The pilot was launched in Mumbai, New Delhi, Bengaluru and Bhubaneswar, comprising participating customers and merchants in a closed user group (CUG). Other locations, including Ahmedabad, Chandigarh, Gangtok, Guwahati, Hyderabad, Indore, Kochi, Lucknow, Patna and Shimla are also being added to the pilot in phases. 

The scope of the pilot is being expanded gradually to include more banks, users and locations as needed, the central bank has said. 

The CBDC can be held or used to carry out transactions similar to how currency notes can be used in physical form, the RBI has said in its annual report.