The Reserve Bank of India (RBI) has just released a report on domestic digital currencies according to which the bank will "soon" launch a prototype digital rupee.
The RBI has committed to periodically disclose information on its functions and benefits.
The CBDC will reportedly be available for use in both wholesale and retail options, as the regulator is analyzing both options.
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The document states that several design models are being discussed. The wholesale CBDC will be issued by the central bank, whereas the retail CBDC will be managed by an intermediary.
The RBI has mentioned the need for "reasonable privacy for low value transactions." This will ensure compliance of cash, which does not generate interest for the owners.
The central bank has not yet decided on the technology that will form the basis of its CBDC.