RBI Digital Currency RBI is bringing digital currency. The Central Bank has released a Concept Note on Digital Currency (CBDC). It has made it clear that the current payment systems will not be replaced.
The Reserve Bank of India (RBI) has started an exercise to introduce a digital currency . The Central Bank released a Concept Note on Digital Currency (CBDC) on Friday. The RBI has made it clear that the digital currency brought by the RBI will be an additional payment method for the users and not to replace the existing payment systems. The RBI explained that the intention behind the issuance of this concept note is to create awareness about CBDCs in general and the planned features of the digital rupee. The digital currency created by RBI is named e₹.
Central bank digital currency comes under RBI . Stored in digital format. e₹ will be additional to the existing currency. Bank notes are no different. But going digital is easier, faster, cheaper. It has the same transaction benefits as any other form of digital currency. Central bank can convert digital currency into paper format. RBI will also be on the balance sheet. Legally valid anywhere.
RBI is going to launch the central bank digital currency in this financial year itself. A central bank digital currency may be available anytime by March 31, 2023. RBI has made it clear that e-Rupee will be launched on a pilot basis for some transactions soon. It will then gradually expand the use of digital currency. The RBI said that after the launch of the pilot project, the features of the digital currency and the benefits of e₹ will be explained from time to time.
Currently money is in the form of currency notes as well as in digital form. A digital rupee has the same value as a currency note. Since it is a digital currency coming under the authority of RBI, the same way RBI takes responsibility for the validity of currency notes, RBI is also responsible for the validity of digital currency. More details about the digital currency will be known once the pilot project starts.
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