1 Dec 2022 , 11:24 AM
In an effort to ensure that its proposed virtual currency offers the same level of anonymity associated with paper money for business exchanges below a material value threshold, the central bank has asked lenders not to report low-value transactions performed via the digital rupee.
The CBDC-R (Central Bank Backed Digital Currency-Retail) would not be tracked or reported by banks after being transferred to customers’ wallets, according to bankers who spoke with ET.
Most cash transactions over Rs50,000 currently require users to provide their permanent account number (PAN), such as bank deposits or purchases. Despite the fact that the RBI has not established a CBDC-R threshold, it is anticipated that retail transactions up to Rs50,000 won’t be reported. Likewise, transactions worth more than Rs2 lakh will need to be disclosed for taxation.
Because transactions are not debited from your bank account, the CBDC-R provides significantly more anonymity. They won’t be reported once you put the money in your wallet, according to another banker.
According to insiders who talked to ET, the RBI will be aware of the total amount of CBDC-R in circulation but will not be aware of the precise ownership breakdown of the virtual currency.
In contrast to UPI, where the bank has a detailed view of the transactions, bankers indicated that when a consumer buys CBDC-R from the bank, the subsequent transaction she does won’t affect her bank account. These transactions will be recorded in the digital wallet so that the complaint mechanism can be activated if transactions go wrong.
For feedback and suggestions, write to us at editorial@iifl.com
Related Tags
Invest wise with Expert advice
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
IIFL Securities Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.