Pilot programme for Digital Rupee: The Reserve Bank of India (RBI) said that it will shortly start restricted test launches of the digital rupee for particular use cases. The concept paper was made public as part of an experiment with digital money in India. The Reserve Bank of India (RBI) is currently developing a phased deployment plan while investigating the advantages and disadvantages of a central bank digital currency.
RBI to start pilot programme for Digital Rupee: Key Points
- Additionally, the central bank stated that the Concept Note on Central Bank Digital Currency was published to raise awareness about Central Bank Digital Currency (CBDC) in general and the proposed features of the Digital Rupee.
- According to the Reserve Bank of India (RBI)’s concept paper on Central Bank Digital Currency (CBDC), application cases for an electronic rupee are being looked at in a way that causes little to no interruption to the financial system. The Central Government said in February that a digital rupee will be introduced during the current fiscal year.
Also Read: RBI To Launch Digital Rupee Soon
- The concept note also covers important issues such technology and design options, potential applications for the digital rupee, and issuance procedures.
- The Reserve Bank of India (RBI) concept note also analyses privacy problems and looks at how the adoption of CBDC may affect the banking sector, monetary policy, and financial stability.
- The central bank stated that both retail and wholesale digital currency have appeal, suggesting that it may take both into consideration.
- The goal of the digital rupee is to mimic the characteristics of money. But unlike bank deposits, it wouldn’t pay interest.
Reserve Bank of India (RBI): Important Takeaways
- Governor of Reserve Bank of India (RBI): Shaktikanta Das
- Headquarters of Reserve Bank of India (RBI): Mumbai