Launch of e-rupee a landmark, will change way business is done: Shaktikanta Das

The Reserve Bank of India (RBI) governor Shaktikanta Das on Wednesday said that e-rupee launch was a landmark moment in the history of currency in the country and it will transform the way business is done and the way transactions are conducted.

“Yesterday, we launched the trial of Central Bank Digital Currency (CBDC) project… It’ll be a landmark achievement as far as the functioning of the entire economy is concerned. Reserve Bank is among the very few central banks in the world which have taken this initiative”, the governor was quoted as saying by ANI.

Also read: RBI to launch first pilot of Digital Rupee on Tues; identifies 9 banks for rollout

Careful on CBDC launch

“We’ll try & launch CBDC in a full-fledged manner in the near future. The retail part of the CBDC trial will be launched later this month. CBDC will be launched in a full-scale manner because this is something where we have to proceed very carefully”, he added.

Nine banks — State Bank of India (SBI), Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank and HSBC — have been identified for participation in the pilot project for the digital rupee.

Speaking at FIBAC 2022 — FICCI’s Banking Conference – Das said that financial conditions have tightened across markets following change in monetary policy actions in advanced countries. He pointed out that in such a scenario, Indian economy has been growing steadily on basis of strong macroeconomic indicators and buffers. India today presents a picture of resilience and optimism for the world, he added.

Defending RBI on inflation

Defending RBI’s stand on inflation and price situation, Das also said on Wednesday that acting prematurely on inflation would have exerted a heavy cost on the economy and citizens. “We prevented a ‘complete collapse of the economy’ by keeping rates lower and stayed away from premature tightening,” Das said.

Also read: FM says ‘complete harmony’ with Reserve Bank of India on cryptos

Das added that there is lot of speculation about the Monetary Policy Committee’s (MPC) November 3 meeting. “We will prepare a report on and send it to the government,” he said.

The RBI governor said that MPC’s resolution is meant for the entire economy. However, he added that a letter to the government is sent under law.