Tokenised deposits are digital versions of traditional bank deposits \u2014 backed 1:1 by real money but represented as secure digital tokens on an approved ledger. Under tokenised deposit pilot india<\/a>, these tokens exist within regulated bank networks, allowing faster and programmable value transfers between financial institutions.<\/p>\n Unlike cryptocurrencies, tokenised deposits are issued by banks, not mined or traded. Each token represents a legal claim on the bank, just like the balance in your savings account. The key advantage: these tokens move instantly, across banks, without waiting for interbank clearing cycles.<\/p>\n The Reserve Bank of India (RBI) has been testing this concept with select banks as part of its \u201cDigital Money Beyond CBDC\u201d initiative \u2014 aimed at improving settlement speed and reducing backend risk.<\/p>\n <\/p>\n Insight:<\/b> Tokenised deposits blend the safety of bank money with the efficiency of blockchain rails.<\/p>\n <\/i><\/p>\n Traditional interbank transfers \u2014 even via RTGS \u2014 involve multiple reconciliation steps. Under interbank digital transfer system<\/a>, tokenised deposits make this process simpler: each participating bank issues, transfers, or redeems tokens in real time on a shared permissioned ledger.<\/p>\n Here\u2019s how it works:<\/b><\/p>\n This design removes the lag of traditional clearing systems and improves liquidity visibility between banks. In pilot tests, tokenised deposit transfers settled in under one second \u2014 a fraction of RTGS timelines.<\/p>\n <\/p>\n Tip:<\/b> Think of tokenised deposits as a WhatsApp message for money \u2014 sent, received, and confirmed instantly.<\/p>\n <\/i><\/p>\nHow Bank-to-Bank Transfers Work with Tokens<\/b><\/h2>\n
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Why Tokenised Deposits Differ from CBDC<\/b><\/h2>\n