RBI To Introduce Digital Rupee In 2022-23 To Boost The Digital Economy

FM Nirmala Sitharaman has announced that the RBI will launch a central bank digital currency (CBDC) in 2022-23 to boost the country's digital economy, which will help in currency management efficiently.

She stated in her Budget 2022 speech that the "Digital Rupee" will assist strengthen the digital economy. She went on to say that the establishment of a central bank digital currency will give the digital economy a huge boost. The money management system will also benefit from digital currency.

This is the first formal declaration from the Union government on the much-anticipated digital currency. For at least two years, the RBI has been working on creating its own digital money.

The establishment of CBDC, according to the FM, will enhance the digital economy of the country. The FM stated that the RBI will introduce the Digital Rupee and that the implementation of CBDC will further boost India's standing as a digital economy, citing the country's world-class digital payment infrastructure.

The RBI has already stated that CBDC is on the cards, despite the fact that the central bank is opposed to allowing private virtual currencies. Last year in December, RBI Deputy Governor T Rabi Sankar indicated that a lot of work had already been done on the wholesale side of digital money, but that the retail side was slightly more challenging and would take longer.