Reserve Bank preparing to bring digital currency

Reserve Bank of India is preparing to introduce digital currency. This information has been given by RBI Deputy Governor T. Rabi Shankar. He told that RBI is working for a central bank digital currency. It can be implemented as a pilot project in the wholesale and retail sectors in the coming days.

Legal change will be needed, according to Deputy Governor Rabi Shankar, it will require a legal change. He said that the existing provisions under the Reserve Bank Act have been made keeping in mind the physical use of currency. In such a situation, amendments will also have to be made in the Coinage Act, Foreign Exchange Management Act (FEMA) and Information Technology Act.
Risks in Digital Currency Also, Rabi Shankar also mentioned some of the risks associated with digital currency. Like withdrawing money from the bank suddenly under pressure. In this regard, he said, “There are risks involved but they need to be carefully evaluated considering the potential benefits.”
Many countries of the world are engaged in exploring the possibility of digital currency and some countries have even introduced it. RBI Deputy Governor Rabi Shankar said that the thinking about digital currency has progressed a lot and many central banks of the world are working in this context.