IndusInd Bank leads first RBI programmable CBDC pilot with $5m disbursement to farmers
IndusInd Bank today marked a significant milestone as the first bank to execute the Reserve Bank of India’s programmable Central Bank Digital Currency (CBDC) pilot. The project, in collaboration with Circularity Innovation Hub India Private Limited (CIH), involved the disbursement of programmable CBDCs to 50 farmers in the Ratnagiri district of Maharashtra, aimed at generating carbon credits. This initiative is part of a broader strategy to cover around 1000 farmers, promoting innovative financial solutions in the agriculture sector.
The pilot project integrates advanced technologies including digital wallets and blockchain platforms, managed by IndusInd Bank and developed by Emertech Innovations. The platform ensures end-to-end traceability and transparency in the generation and distribution of Circularity Credits. Key partners such as Hindustan Agro & Jackfruit King Company and CIH play critical roles in farmer engagement and developing circular economy business models, respectively.
Sumant Kathpalia, Managing Director & CEO of IndusInd Bank, expressed pride in their role in advancing economic growth and environmental sustainability through this pilot. Joel Michael, Founder and CEO of CIH, emphasized the dual focus on climate change and enhancing farmer income. Gaurav Somwanshi, Co-Founder and CEO of Emertech Innovations, highlighted the transformative potential of combining technology with sustainability.
The next phase of the project will target Safai Karmacharis to boost their income through plastic waste recycling, with CIH’s ‘Planet and People Platform’ providing crucial transparency. The initiative aims to extend its reach nationwide, benefitting more farmers and contributing to India’s sustainable development goals.
The successful execution of the RBI’s programmable CBDC pilot by IndusInd Bank could be a game-changer for the financial industry and agricultural sector. By leveraging digital currency for specific purposes like carbon credit generation, IndusInd Bank is not only advancing financial technology but also promoting environmental sustainability. This pilot is a prime example of how targeted financial interventions can lead to broader social and environmental benefits.