IndusInd Bank announced successful execution of RBI’s programmable CBDC pilot, becoming the first Bank to do so. “This pilot project is executed in collaboration with Circularity Innovation Hub India Private Limited (CIH), as an alternate form of CBDC wherein the Bank can program the end use of funds, being disbursed to farmers in lieu of generation of carbon credits,” it said in a regulatory filing.
As a part of this pilot, IndusInd Bank initiated the programmable CBDC disbursement to 50 farmers in Ratnagiri district of Maharashtra and will cover around 1000 farmers going ahead.
This project involves IndusInd Bank crafting digital wallets and managing CBDC transfers, alongside partners including CIH, which is a Sponsor Agency for this project and a climate-tech company. Additionally, Hindustan Agro & Jackfruit King Company spearheaded farmer engagement, linking sustainable practices to additional revenue streams, while Emertech Innovations developed a Blockchain-backed platform to provide end-to-end traceability and transparency in the generation of revenues from Circularity Credits and its traceable disbursement. IndusInd Bank said that the collaborative effort aims to promote Circularity Credits from recycling agricultural waste. CIH, IndusInd Bank, and partners aim to scale the pilot into a nationwide initiative benefiting farmers.
Furthermore, the Phase 2 of the project will focus on Safai Karmacharis, aiming to increase their income by leveraging revenues generated from the collection, recycling, and repurposing of plastic waste.
Sumant Kathpalia, Managing Director & CEO, IndusInd Bank, said, “We take immense pride in this pivotal role for 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.”
Joel Michael, Founder and CEO of Circularity Innovation Hub (CIH), said, “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.”
Gaurav Somwanshi, Co-Founder and CEO of Emertech Innovations, said, “This initiative with the RBI showcases the transformative potential of combining technology with sustainability. We’re excited about the future, particularly our plans to extend these benefits to waste reclaimers and more farmers.”