Introduction: IndusInd Bank Limited has become the first bank to successfully execute the Reserve Bank of India’s (RBI) programmable Central Bank Digital Currency (CBDC) pilot, aimed at compensating farmers for carbon credits. This pilot project, in collaboration with Circularity Innovation Hub India Private Limited (CIH), introduces an innovative financial solution for the agricultural sector.
Innovative CBDC Pilot:
- Project Focus: Programming the end use of funds disbursed to farmers for carbon credit generation.
- Initial Implementation: IndusInd Bank initiated the programmable CBDC disbursement to 50 farmers in Ratnagiri district, Maharashtra, with plans to cover 1,000 farmers.
Objectives:
- Promote Circularity Credits by recycling agricultural waste.
Collaborative Efforts:
- Digital Wallets and CBDC Transfers: Managed by IndusInd Bank.
- Sponsor Agency: CIH promotes circular economy models and generates Circularity Credits.
- Farmer Engagement: Led by Hindustan Agro & Jackfruit King Company, linking sustainable practices to additional revenue streams.
- Blockchain Platform: Developed by Emertech Innovations for traceability and transparency in revenue generation and disbursement.
Future Phases:
- Phase 2 Target: Increase income for Safai Karmacharis (sanitation workers) through plastic waste recycling.
- Transparency: Ensured by CIH’s ‘Planet and People Platform’ in beneficiary disbursements.
Points to Note:
- RBI’s CBDC Introduction: Launched in 2022 using distributed ledger technology, allowing banks to transact with these tokens.
- Definition of CBDC: A form of digital currency or e-rupee issued by a central bank, equivalent to fiat currency.
About IndusInd Bank Limited:
- MD & CEO: Sumant Kathpalia
- Headquarters: Mumbai, Maharashtra
- Established: 1994
- Tagline: “We Make You Feel Richer”
Login with Google