- Earlier, the Union Finance Minister, Nirmala Sitharaman, while presenting the Union Budget-2022 announced the rolling out of digital currency by the RBI.
- The RBI identified 9 banks for their participation in the launch of digital currency:
- State Bank of India (SBI)
- HDFC Bank
- ICICI Bank
- Bank of Baroda
- Union Bank of India
- Yes Bank
- IDFC First Bank
- Kotak Mahindra Bank
- HSBC
- As per the RBI, the launch of digital currency will serve as an additional option to the currently available forms of money.
- It further said that the launch of the digital rupee was not to replace but to complement the available forms of money.
- Digital Rupee or Central Bank Digital Currency (CBDC) is an electronic form of money (e-Money) that is issued by a central bank (in India, the RBI).
- The CBDC is of two types:
- Retail (CBDC-R)- available for common use
- Wholesale (CBDC-W)- restricted use by financial institutions
- Merits of a digital currency:
- Easier and faster transaction
- Cannot be physically damaged
- Secure and market efficient
- Better government checks
Question:
Q.1 How many banks were identified by the RBI for the launch of the pilot of the digital rupee?a. 7
b. 8
c. 9
d. 10
