RBI Starts Wholesale Digital Rupee Pilot in Call Money Market

Current Context: The Reserve Bank of India (RBI) has started a wholesale pilot of Central Bank Digital Currency (CBDC), also known as the Digital Rupee, in the call money market. The pilot program was initiated to test the system, accounting, and multiple other aspects.

• The call money market is where banks borrow from or lend to each other for short term, usually a day, at market-determined rates.
• Nine banks, including four public sector banks and five private sector banks, are participating in this e-rupee call money pilot.
• This initiative follows the launch of a wholesale CBDC pilot for the government securities market in November 2022.
• The use case for this pilot was limited to the settlement of secondary market transactions in government securities.
• The new pilot project expands the use case of the CBDC to include transactions in the call money market.

Question:

Q.1 In which market has the RBI started a wholesale pilot of the Digital Rupee?
a. Stock Market
b. Call Money Market
c. Commodity Market
d. Forex Market