Last Updated: October 07, 2022, 16:47 IST
The e-rupee will provide an additional option to the currently available forms of money, says RBI in a note.
RBI releases Concept Note on Central Bank Digital Currency to create awareness about planned features of the digital rupee, CBDCs
The Reserve Bank of India (RBI) on Friday released a Concept Note on Central Bank Digital Currency (CBDC), to create awareness about CBDCs in general and the planned features of the digital rupee in particular. The central bank said it will soon commence limited pilot launches of e-rupee for specific use cases.
“The e-rupee will provide an additional option to the currently available forms of money. It is substantially not different from banknotes, but being digital it is likely to be easier, faster and cheaper. It also has all the transactional benefits of other forms of digital money,” the central bank said in the note.
The RBI said it “broadly defines CBDC as the legal tender issued by a central bank in a digital form. It is akin to sovereign paper currency but takes a different form, exchangeable at par with the existing currency and shall be accepted as a medium of payment, legal tender and a safe store of value. CBDCs would appear as liability on a central bank’s balance sheet”.
The central bank said the Bank for International Settlement has laid down “foundational principles” and “core features” of a CBDC, to guide exploration and support public policy objectives, as per the need of existing mandate of central banks.
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