RBI to do pilot project on its digital currency this year

8 Sep 2022 , 09:47 AM

The Reserve Bank of India (RBI) will introduce its digital money as a pilot project this year, according to RBI Deputy Governor T. Rabi Sankar on Wednesday.

He said that Central Bank Digital Currency (CBDC) is the most effective solution for cross-border payments when speaking at the India Ideas Summit. CBDC would be introduced in 2022—2023, according to a statement made by Finance Minister Nirmala Sitharaman in the Union Budget.

However, he emphasized that RBI does not seek a cashless world and is instead eager to provide consumers with workable options. Unified Payments Interface, or UPI, is also expected to become more globally oriented, according to Sankar.

He stated that the RBI is attempting to adjust its digital payment policy in response to comments from various stakeholders. Sankar observed that the digital payments sector was expanding at a pace of between 40% and 50% annually, underscoring its rising relevance in the nation.

At the same time, the Deputy Governor of the RBI stated that the central bank is working to protect data privacy in the context of digital infrastructure. He continued by saying that it is also aiming to scale up the technological stability of the digital payments infrastructure. In relation to this, Sankar stated that the RBI concentrates on stepping up fraud management.

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