The Reserve Bank of India announced two days ago that the Central Bank Digital Currency (CBDC) will be introduced in the ongoing fiscal year, although in a gradual manner.
“Process of introduction of CBDC will be gradual so that there is no disruption to the financial and banking system,” said RBI’s deputy governor T Rabi Sankar.
Only about two weeks ago, the RBI announced its plans for a ‘graded approach’ towards the launch of the CBDC in its annual report of 2021-2022.
According to the report, the RBI is currently examining “the appropriate design elements of CBDCs that could be implemented with little, or no disruption.”
The report also mentions that “the design of CBDC needs to be in conformity with the stated objectives of monetary policy, financial stability and efficient operations of currency and payment systems.”
The plan to introduce an Indian digital currency was announced by India’s Finance Minister Nirmala Sitharaman earlier this year.
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