RBI to Launch Pilot for Deposit Tokenisation
The Reserve Bank of India (RBI) will roll out a pilot project for deposit tokenisation starting October 8, 2025. The initiative will be anchored on the wholesale version of the central bank’s digital currency (CBDC).
Concept of Deposit Tokenisation
Deposit tokenisation involves converting a traditional bank deposit into a digital token that mirrors the same value. While the actual money remains with the bank, the token can be transferred or traded on distributed ledger technology, allowing faster and more secure transactions.
Why Use CBDC as Base
By using the wholesale CBDC (e₹-W) as the settlement layer, token transfers gain the backing of central bank money. This ensures security, settlement finality, and lower counterparty risk in interbank transactions.
Limited Participation and Safeguards
The pilot will include select banks operating under a controlled environment. The RBI has underlined the need for strict regulatory safeguards to ensure legal enforceability and financial stability while testing the system.
Future Possibilities
If successful, the RBI may expand tokenisation to other financial instruments, including commercial papers and money market products. The move is seen as part of India’s broader push to modernize financial infrastructure, cut transaction costs, and accelerate settlements.
