Day 1 Sees Rs 275-Crore Trade In 48 G-Sec Transactions, Details Here

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Even as the government has started the government securities (G-Sec) transactions in digital rupee along with the wholesale segment, Tuesday (first day of pilot) witnessed a total of 48 trades worth Rs 275 crore using the RBI’s central bank digital currency (CBDC).

According to data from the Clearing Corporation of India Ltd (CCIL), out of the total 48 trades, 24 deals of 7.38 per cent securities maturing in 2027 were made at a weighted average yield of 7.33 per cent, while 23 trades of 7.26 per cent securities maturing in 2032 were at a weighted average yield of 7.41 per cent. One trade was executed on the 6.54 per cent security maturing in 2032 at a yield of 7.45 per cent. The total trading volume in the regular bond market on Tuesday was at Rs 20,865 crore.

According to a Business Standard report quoting sources, the first deal was struck between State Bank of India (SBI) and another state-owned lender Bank of Baroda (BoB).

“IDFC First Bank executed the first secondary market transaction in G-secs using CBDC settlement on Tuesday,” IDFC First said in a statement. ICICI Bank sold the five-year government paper to IDFC First Bank.

Nine banks — State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank and HSBC — have participated in the pilot.

The commencement of trades in the rupee comes after the central bank earlier this month said the RBI will soon start pilot launch of the digital rupee (e₹) for specific use cases.

“The use case for this pilot is settlement of secondary market transactions in government securities. Use of e₹-W is expected to make the inter-bank market more efficient. Settlement in central bank money would reduce transaction costs by pre-empting the need for settlement guarantee infrastructure or for collateral to mitigate settlement risk. Going forward, other wholesale transactions, and cross-border payments will be the focus of future pilots, based on the learnings from this pilot,” the RBI said on Monday in a statement.

The RBI also said the first pilot in Digital Rupee- Retail segment (e₹-R) is planned for launch within a month in select locations in closed user groups comprising customers and merchants. The details regarding operationalisation of e₹-R pilot shall be communicated in due course.

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