Induslnd Bank Executed CBDC Pilot Programme of RBI

IndusInd Bank recently announced that it has become the first bank to successfully execute RBI’s programmable CBDC pilot in an exchange filing. The filing also mentioned that the pilot project is being carried out in partnership with Circularity Innovation Hub India Private Limited (CIH) as a substitute for CBDC, allowing the Bank to plan how money would be used in the end and provide it to farmers instead of producing carbon credits.

IndusInd Bank launched the programmable CBDC payout to 50 farmers in the Ratnagiri area of Maharashtra as part of this trial, and it will eventually cover about 1000 farmers. This is a major step forward in the adoption of creative financial solutions for the agriculture industry.

As part of this project, IndusInd Bank is creating digital wallets and overseeing CBDC transfers. It also collaborates with CIH, a project sponsor and a climate-tech startup that develops circular economy business models based on recycling waste and repurposing it as energy or bi-products to create the first-ever Circularity Credits.

In addition, Emertech Innovations created a Blockchain-backed platform to enable end-to-end traceability and transparency in the generation of revenues from Circularity Credits and its traceable disbursement. At the same time, Hindustan Agro & Jackfruit King Company led farmer engagement by connecting sustainable practices to new revenue streams. The goal of this joint venture is to encourage the recycling of agricultural waste into Circularity Credits. The goal of CIH, IndusInd Bank, and collaborators is to expand the pilot into a national programme that will assist farmers.

Phase 2 of the project would focus on Safai Karmacharis with an objective to increase their income by leveraging revenues generated from the collection, recycling, and repurposing of plastic waste.

“We take immense pride in this pivotal role in driving the programmable CBDC by the Reserve Bank of India. Collaborating with CIH and other stakeholders, we are excited to drive a positive change in the agriculture sector and beyond. This collaboration reflects our commitment to advancing both economic growth and environmental sustainability. Together, we are committed to leveraging innovative solutions to empower communities and build a brighter future for all,” said Mr Sumant Kathpalia, Managing Director & CEO of IndusInd Bank.

“In our efforts to positively contribute towards climate change, we aim to increase the income of the farmer; our goal is to ‘give back to the hand that gives’. In the future, as we strive to continue to clean our planet through circular economy solutions, we hope to also benefit the ones working tirelessly to keep our cities clean,” said Joel Michael, Founder and CEO of Circularity Innovation Hub (CIH).

About Induslnd Bank Ltd

Incorporated in 1994, IndusInd Bank Limited provides a wide range of banking products and financial services to corporate and retail clients and undertakes treasury operations. On April 23, 2024, the bank’s shares opened at ₹1,486.75 and touched the day high of ₹1,486.75 at 09:35 AM.

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