IndusInd Bank on Monday said it has executed the maiden transaction of the programmable e-rupee transaction in Maharashtra's Ratnagiri district. The private sector lender said a pilot was done in collaboration with climate-tech company Circularity Innovation Hub for paying farmers in lieu of generation of carbon credits.
Under the 'programmability' feature, the end use of funds is programmed by a bank so as to avoid any misuse.
It initiated the programmable CBDC (Central Bank Digital Currency) disbursement to 50 farmers in Ratnagiri district of Maharashtra, and the aim is to scale it up to 1,000 farmers, the statement said, without giving a timeline.
Explaining the present project, the statement said the bank creates digital wallets and manages the CBDC transfers alongside partners, including CIH, and added that 'circularity credits' are generated.
Hindustan Agro and Jackfruit King Company take care of farmer engagement, linking sustainable practices to additional revenue streams, while Emertech Innovations has 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, it added.
The statement said in the next phase, the project will focus on safai karamcharis, aiming to increase their income by leveraging revenues generated from the collection, recycling, and repurposing of plastic waste.
"Collaborating with CIH and other stakeholders, we are excited to drive a positive change in the agriculture sector and beyond," the bank's Chief Executive and Managing Director Sumant Kathpalia said.
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