tl;dr
IndusInd Bank has collaborated with Circularity Innovation Hub (CIH) to conduct a pilot for the Reserve Bank of India's central bank digital currency (CBDC). The pilot aims to disburse funds to farmers with programmed end-uses, rather than generating carbon credits. The project involves digital wall...
IndusInd Bank has joined forces with Circularity Innovation Hub (CIH) to participate in the Reserve Bank of India's central bank digital currency (CBDC) pilot. The objective of the pilot is to distribute funds to farmers with programmed end-uses rather than the generation of carbon credits.
The project will involve managing CBDC transfers and promoting circularity credits from recycling agricultural waste. This collaboration is aimed at extending benefits to waste reclaimers and farmers, with a focus on increasing income for cleaning staff in the second phase of the project. IndusInd Bank, which has approximately 39 million customers, reported a 21% growth, with plans to scale the pilot into a nationwide initiative for farmers.
India’s central bank is exploring additional functionalities of programmability and offline capability in CBDC retail payments to facilitate specific and targeted transactions, particularly in areas with poor or limited internet connectivity. The pilot project commenced with the programmable CBDC disbursement to 50 farmers in Maharashtra's Ratnagiri district and is poised to cover around 1000 farmers in the future.
CIH, in collaboration with partners such as Hindustan Agro, Jackfruit King Company, and Emertech Innovations, is spearheading efforts to link sustainable practices to additional revenue streams for farmers, while also championing circular economy business models around recycling agricultural waste.
The collaboration is expected to drive positive change in the agriculture sector and beyond, aligning with IndusInd Bank's commitment to advancing economic growth and environmental sustainability. The second phase of the project will focus on leveraging revenues generated from the collection, recycling, and repurposing of plastic waste to increase the income of cleaning staff. IndusInd Bank, with a customer base of about 39 million, achieved a net profit of Indian Rupees 8,977 crores ($1.07 million) for the year ended March 31, 2024—reflecting a growth of 21% over the previous year.
The collaboration between IndusInd Bank and CIH underscores the transformative potential of combining technology with sustainability. It aims to extend these benefits to waste reclaimers and more farmers, with plans to scale the pilot into a nationwide initiative benefiting farmers.
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