RBI to soon commence pilot launch of digital Rupee.
The Reserve Bank of India in a press release on Friday, October 7 announced that it will soon commence pilot launches of digital rupees in India for specific use cases. As the extent and scope of such pilot launches expand, RBI will continue to communicate about the specific features and benefits of the digital rupee, from time to time.
According to RBI, this Concept Note explains the objectives, choices, benefits, and risks of issuing a CBDC in India referred to as digital Rupee.
These digital notes won't be much different from the banknotes, but it is likely to be easier, faster, and cheaper. It will also have all the transactional benefits of other forms of digital money, the release said.
The Note also seeks to explain Reserve Bank’s approach towards the introduction of the digital Rupee, RBI informs.
The Concept Note also discusses key considerations such as technology and design choices, possible uses of digital rupee, issuance mechanisms etc. It examines the implications of introduction of CBDC on the banking system, monetary policy, financial stability, and analyses privacy issues.
In the Union Budget for 2022-23 held on February 1, the finance minister, Nirmala Sitaraman announced the rollout of the digital rupee, CBDC, a digital equivalent to the rupee.
According to an article by Outlook, RBI held several consultations with fintech companies and banks to iron out a roll-out strategy back in September.
According to reports, RBI proposed to the government the introduction of digital currency back in October 2021.