Digital currency an idea that can go far, but will RBI explore it?

India’s central bank is opening its balance sheet to the public. Retail investors will have online access to the government bond market via investment accounts with the Reserve Bank.

As the government’s investment bank, the RBI manages institutional buying and selling in gilt securities. Skepticism is high about “Retail Direct” because previous attempts at bringing public debt to the masses haven’t gone anywhere. But if the initiative takes off, it could be a precursor to an interest-paying digital currency competing with bank deposits. 

The idea of a central bank digital currency, which will reside on smartphones but as a direct claim on