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Informist, Wednesday, Nov. 6, 2024

 

--RBI Das: Not in rush to launch nationwide retail e-rupee yet
--RBI Das: No target date yet to launch retail e-rupee
--RBI Das: New use cases for retail e-rupee seen, such as for tenant farmers
--RBI Das: Will encourage programmed e-rupee loans to tenant farmers
--RBI Das: See greater interest for e-rupee for cross-border settlement

 

MUMBAI – The Reserve Bank of India is not in a hurry to launch the central bank digital currency, and it has not yet fixed a target date for the same, Governor Shaktikanta Das said at the Business Standard BFSI Summit 2024 on Wednesday. "We have to remember that central bank digital currency is a pilot project and from day one we never intended to launch it out nationally because we are dealing with currency, the safety and security and robust of design is very important," Das said.

 

"It is in an experimental stage with regard to possible use-cases. We are not in great hurry to launch central bank digital currency and we are experimenting with it," he said.

 

He reiterated that the central bank digital currency may aid efficiency of cross-border transactions. He also said that India is quite ahead of even advanced economies when it comes to the usage of digital rupee.

 

"Central bank digital currency's programmability, it being interoperable with unified payments interface, the facility of making offline payments are some of the positive features of the project," Das said. "I think it will facilitate cross-border payments in a more efficient and cost-effective manner than anything else," Das said, listing the advantages of the project.

 

Apart from cross-border transactions, the project is also being used by banks to extend central bank digital currency-based loans to tenant farmers and by many companies in place of vouchers, Das said.

 

He said it is also being used by the Odisha government to give cash support to beneficiaries. In September, the Odisha government launched Subhadra Yojana which facilitates direct transfer to women using the central bank digital currency.

 

The central bank digital currency pilot activity on wholesale central bank digital currency for interbank use and retail central bank digital currency for general population use was launched by the RBI in December 2022. Around 16 banks are a part of this project.  End

 

Reported by Siddhi Chauhan and Kshipra Petkar

Edited by Ashish Shirke

 

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