Digital rupee likely to bring down cost of cross-border payments

The introduction of CBDC for cross-border remittances can bring down costs substantially

The introduction of a central bank digital currency (CBDC) in cross-border remittances is likely to bring down significantly the cost of transaction for customers. At present, customers have to pay a fee to the bank. This is a percentage or a fixed amount of money transferred. The fee is applicable to both inward and outward remittances.
 

Last week, the Reserve Bank of India (RBI) had published a concept note on CBDC. The central bank is in the process of launching a pilot for its CBDC, christened eRe.

The RBI has defined CBDC as a legal tender issued by a central bank