The RBI has today released a Concept Note on Central Bank Digital Currency (CBDC) for India.
The purpose is to create general awareness and the planned features of the Digital Rupee (e₹), in particular. It explains the objectives, choices, benefits, and risks of issuing a CBDC in India.
The Note also seeks to explain RBI’s approach towards introduction of the CBDC. It also discusses key considerations such as technology and design choices, possible uses of Digital Rupee, issuance mechanisms, etc. It examines the implications of introduction of CBDC on the banking system, monetary policy, financial stability, and analyses privacy issues.
The Reserve Bank will soon commence pilot launches of e₹ for specific use cases.