RBI Digital Currency
RBI digital currency is an initiative from the Reserve Bank of India (RBI) to develop a central bank-backed digital version of Indian Rupees. This digital currency would be available for use by individuals, businesses, and other entities within India. The primary purpose of this project is to reduce transaction costs and improve financial inclusion in the country.
The RBI has been exploring the concept since 2018, when it formed a committee dedicated to examining the feasibility of such a system. In 2019, they issued a report that indicated their interest in pursuing this initiative further. Since then, several working groups have been established with various stakeholders involved in order to progress towards launching the project.
In terms of functionality, RBI digital currency will enable users to send funds electronically while maintaining privacy due to its decentralized nature. Additionally, it could potentially provide an alternative payment system which is not subject to any fees or delays associated with traditional banking systems; making it more accessible for people living in remote areas who may not have access otherwise. Finally, as it does not rely on third parties like banks or Payment Service Providers (PSPs), transactions are expected to be faster than those done through existing electronic payment systems used in India today.
Overall, RBI’s plans for its own digital currency show potential for improving payment infrastructure and increasing financial inclusion within India; however there are still many unanswered questions regarding how exactly this technology will work and what impact it could have on existing systems once implemented fully across the country. More research into these topics should help shed light on what kind of implications we can expect from RBI’s proposed move into this space moving forward
