RBI Focusing On Introducing a Digital Rupee, Says Governor Shaktikanta Das

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oi-Sneha Kulkarni

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The Reserve Bank is reviewing the financial stability implications of adopting a Central Bank Digital Currency as we focus on introducing a digital version of the fiat currency (CBDC), Shaktikanta Das said on Thursday during his speech at the Indian Economic Conclave 2021.

Since the underlying technology is still evolving, the RBI is looking at ways to ensure a transparent, reliable, and legally certain settlement finality, which is critical for a secure and efficient payment system.

RBI Focusing On Introducing a Digital Rupee, Says Governor Das

It should also be noted that there are few real examples of CBDC operationalization around the world; this necessitates extreme caution in order to create a safe and reliable model, he added further.

In April 2018, the central bank made it illegal for commercial banks to provide banking services to cryptocurrency traders and exchanges. However, the Supreme Court of India overturned the ban in March of last year, bringing relief to exchanges serving Indian clients.

Das also made a strong case for developing India’s digital lending and payments industry, stating that banks must adjust to technological changes in order to work with Fintech firms. “Innovations in fintech are expected to threaten the financial sector,” Das said.

“There is no difference of opinion between the RBI and the Government on cryptocurrencies,” Das said.

Banks and NBFCs, according to Das, need to improve their skill sets to identify risks, as well as collect capital to guard against slippages and plan for the unwinding of monetary and fiscal policies.





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