RBI to initiate CBDC in wholesale, retail sectors
- RBI is in process of implementing Central Bank Digital Currency (CBDC) in a phased manner for wholesale and retail segments.
Central Bank Digital Currency (CBDC)
- Announced in Union Budget 2022-23
- Necessary amendments to relevant section of RBI Act, 1934 have been made with the passage of Finance Bill 2022.
- It has enabled RBI to conduct a pilot and subsequent issuance of CBDC.
- RBI is working on phased implementation of CBDC in both wholesale and retail segment.
- CBDC: Digital or virtual currency but it is not comparable with private virtual currencies or cryptocurrency.
- Private virtual currencies do not represent any person’s debt or liabilities as there is no issuer.
Prelims take away
- Central Bank Digital Currency (CBDC)
- Reserve Bank of India (RBI)