RBI launches Digital Rupee: All you need
to know

Digital Rupee or Central Bank Digital Currency (CBDC), as the name suggests, is a digital
form of currency notes
issued by a central bank

What is CBDC?

What is CBDC?

It is akin to paper currency (i.e. the Indian rupee) and is exchangeable one-to-one with the fiat currency

The Reserve Bank of India (RBI) has rolled out digital rupee as a pilot project for the wholesale segment on November 1

RBI launches digital
rupee on pilot project

CBDC will host all benefits that cryptocurrencies 
and digital payments offer

What are the advantages of CBDC? 

Similar to digital currency, RBI’s digital rupee can’t be damaged or lost, physically. Thus, it’s lifetime is indefinite

What are the advantages of CBDC? 

Since CBDC will be governed by a central authority, there are fewer risks involved in terms of volatility unlike other digital currencies

What are the advantages of CBDC? 

As per RBI, digital rupee is expected to make inter-bank market more efficient. Settlement in central bank money would reduce transaction costs,
pre-empting the need for
collateral to mitigate settlement risk

What are the advantages of CBDC? 

The concept of CBDC was first announced in FY23 
budget by Finance Minister Nirmala Sitharaman 
who said that RBI would roll out the digital equivalent 
of the rupee this fiscal

Origin of CBDC

RBI has become the world’s first major central
bank to start a pilot project with its own digital currency

RBI’s digital currency initiative

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