IndusInd Bank in collaboration with Circularity Innovation Hub India Private Limited (CIH)has achieved a significant milestone by successfully implementing the Reserve Bank of India’s pilot program on Programmable Central Bank Digital Currency (CBDC), This pioneering initiative aims to revolutionize agricultural finance by targeting farmers for carbon credit generation.
Pilot Project Details
In this pilot project, IndusInd Bank programmed CBDC To facilitate fund disbursement with special focus Helping farmers in Ratnagiri district of Maharashtra, The bank initially began payments to 50 farmers, with plans to expand the program to approximately 1,000 farmers. Notably, this program is the first initiative of its kind where CBDC funds are directed towards promoting sustainable practices in agriculture, especially in carbon credit production.
Collaborative Effort for Impact
IndusInd Bank along with CIH and other partners led this initiative with a multi-pronged approach. Hindustan Agro and Jackfruit King Company played an important role in connecting the farmers. and linking sustainable practices to additional revenue streams. Emertech Innovation has developed a blockchain-enabled platform to ensure transparency and traceability in the generation and distribution of revenue from circularity credits.
Future prospects and commitments
Sumant Kathpalia, Managing Director and Chief Executive of IndusInd Bank, expressed pride in the bank’s role in advancing the Programmable CBDC initiative. The collaborative effort reflects a commitment to pursuing both economic growth and environmental sustainability. Joel Michael, Founder and CEO of CIH, The importance of empowering farmers and making a positive contribution to climate change was stressed. Bharat Dhokane Patil, Executive Chairman, Hindustan Agro, highlighted the impact of the initiative on the agriculture sector and its alignment with social and environmental goals.
Through this innovative pilot programme, IndusInd Bank and its partners aim to scale up this initiative across the country, which will ultimately benefit farmers and promote sustainable farming practices.
