Digital Currency To Further Bolster Digital Economy, Says RBI

Chandigarh

Digital currency will further strengthen the digital economy, make the payments system more efficient, reduce the cost involved in physical cash management, and contribute to further financial inclusion, RBI Executive Directory Ajay Kumar Chourdhary said on Wednesday. Chaudhary addressed an outreach seminar on Central Bank Digital Currency- the India story organised by the Reserve Bank of India.

The event was organised ahead of a two-day International Financial Architecture Working Group meeting of G20 slated to take place on January 30 and 31. Last year, the RBI already launched pilots in CBDC (Central Bank Digital Currency) in wholesale and retail segments. Chaudhary said the CBDC is just a digital form of the physical currency and will have all its characteristics.

It is non-remunerative, that is it does not carry any interest like any currency, noted Choudhary, adding, E-rupee is also expected to offer features of physical cash like safety and settlement of transactions. Asserting that the digital currency aims to complement rather than replace the currency forms of money, he added that it should not be constructed as a step to replace any of the existing bouquets of payment already available to us.