The Reserve Bank of India has issued a concept note on Central Bank Digital Currency (CBDC) with the instructions to launch its pilot project of the e-rupee. This is being done to generate a general perception of such a form of currency. Secondly, bringing about a certain amount of familiarity connected with the features that go with the digital rupee.
Earlier in last February, during the Union Budget speech, Finance Minister of India, Nirmala Sitaraman, announced that the government, along with the RBI, will issue India’s first-ever official CBDC, Digital Rupee, in 2022-23, which will bring a significant boost to the Indian economy.
With time, the plans are to extend a few more such launches to correctly gauge the impact quotient of the connected features and their corresponding benefits and device ways and means of communicating the same.
According to the Reserve Bank of India, the e-rupee will help speed up the process of all transactions, making it more convenient and cost-effective. It will also be instrumental in offering one more choice regarding the prevalent array of existing currencies one is familiar with. Also, the need for any confusion should not arise because it is similar to the bank notes one presently deals with.
In terms of the concept note the Reserve Bank of India (RBI) has issued to Central Bank Digital Currency (CBDC), there is a list of suggestions and focal points to keep in consideration, where the e-rupee is concerned, factors related to the technology that is to be used, coupled with a suitable and befitting set of design options, along with the positive ways of highlighting the advantages of the digital version of the rupee.