The Reserve Bank of India (RBI) is planning to introduce a central bank digital currency (CBDC) in stages this fiscal year, T Rabi Shankar, deputy governor of the central bank, said in a press conference on Wednesday.
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- “Process of [the] introduction of CBDC will be gradual so that there is no disruption [to] the financial and banking system,” Sankar said, according to the Economic Times.
- In its annual 2021-2022 report, the RBI said that the digital rupee design must conform with India’s monetary policy and financial stability objectives while causing no disruption.
- The introduction of the CBDC will involve proofs-of-concept and pilots before launch, the annual report noted.
- The RBI Act of 1934 was amended in the Finance Bill 2022, to provide the necessary legal framework for CBDC issuance.
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