NewsGate Press Network

Sooner or later the promised ‘central bank digital currency’ (CBDC) by the Reserve Bank of India (RBI) is bound to happen.

The annual report of the RBI for the financial year 2021-22 says it all that CBDC will be introduced in a step-by-step approach while exploring its all the pros and cons.

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 RBI document states.

Accordingly, the appropriate design elements of CBDCs that could be implemented with little or no disruption are under examination.
The introduction of CBDC was announced in the Union Budget 2022-23 and an appropriate amendment to the RBI Act, 1934 has been included in the Finance Bill, 2022.

The Finance Bill, 2022 has been enacted, providing a legal framework for the launch of CBDC.