RBI open to digital currency, examining the need to introduce CBDC

A CBDC is legal tender and a central bank liability in digital form denominated in a sovereign currency and appearing on the central bank's balance sheet.

The Reserve Bank of India (RBI) on Monday said it is examining the need to introduce a central bank digital currency (CBDC) in the country. In case the need to have a CBDC arises, the apex bank will also look for ways to operationalise it.

“In India, the regulators and governments have been sceptical about these currencies and are apprehensive about the associated risks. Nevertheless, the RBI is exploring the possibility as to whether there is a need for a digital version of the fiat currency,” the RBI said.

A CBDC is legal tender and a central bank liability in digital form