Consumers will be able to exchange digital rupee for cash: PM

Consumers will be able to exchange the digital rupee proposed in the Union Budget 2022 for cash, Prime Minister Narendra Modi said on Wednesday, adding this will open new opportunities in the fintech sector.

Addressing an ‘Atmanirbha Arthavyavastha’ (Self-reliant Economy) symposium organised by the BJP, Modi said the central bank digital currency will make online payments more secure and risk free and boost digital economy.

“The digital rupee will be the digital form of our physical rupee and will regulated by the RBI. This will be such a system that will enable exchange of physical currency with digital currency,” the PM said at the virtual symposium attended by chief ministers of BJP-ruled states and party workers.

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“The central bank digital currency will strengthen the digital economy… If anyone makes a payment in digital currency, you will be able to change it to cash,” he said.

“This will also lead to ease in development of global digital payment systems,” he said.

Modi said the digital rupee will revolutionise the fintech sector by creating new opportunities and lessen the burden in handling, printing, logistics management of cash.

Finance Minister Nirmala Sitharaman had announced that India will launch a digital rupee in 2022-23 using blockchain and other technologies.