RBI Launches Digital Rupee | Central Bank Digital Currency | UPSC Prelims & Mains 2023

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The Reserve Bank of India (RBI) has taken a major step towards making India’s monetary and payment systems more efficient with the launch of digital rupee, or e-rupee, to settle secondary market transactions in government securities. According to the RBI, the start of the pilot phase of the Digital Rupee rollout is a landmark moment in the history of currency in the country and would transform the way business is done and transactions are conducted.

In this backdrop, it is important to understand the implications of the introduction of Central Bank Digital Currency on the banking system, monetary policy, financial stability, and also analyse the privacy issues associated with Digital Rupee.

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In this lecture, we will discuss:
1. What is RBI’s digital rupee?
2. Is India ready for digital rupee?
3. What are the implications of introduction of digital rupee?
4. How is digital rupee different from cryptocurrency?
5. What is CBDC?
6. Can digital rupee replace all private cryptocurrencies in India?

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Happy Learning!
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About the Author: Gwendolyn Ballou