RBI to introduce ‘central bank digital currency’

The Reserve Bank of India (RBI) is looking at the possibility of introducing a ‘central bank digital currency’. “While many central banks are still engaged in the debate, an inter-departmental group has been constituted by the Reserve Bank to study and provide guidance on the desirability and feasibility to introduce a central bank digital currency.” said the RBI Deputy Governor B P Kanungo. He also added that the reports will be submitted by the end of June 2018.

The technological innovations also has some potential to improve the inclusiveness of the financial system of India. The RBI has directed banks to deal with any virtual currencies.

Reserve Bank of India has cautioned the people who hold virtual currencies which includes crypto currencies(Bitcoin etc.,) since there are alot of internal risks involved in such virtual currencies. So taking concern on the risk factors the RBI will not provide services regarding the virtual currencies.