GulfHindi English Desk: The Reserve Bank of India (RBI) has announced plans to introduce interoperability between Unified Payments Interface (UPI) and Central Bank Digital Currency (CBDC) in the country’s banking sector. This initiative marks a new milestone in the history of the banking sector.
According to RBI Deputy Governor T. Ravi Shankar, around nine banks have already implemented this system, while another 3-4 banks are currently testing it. Shankar emphasized that RBI is particularly interested in launching this system as it is different from other payment instruments, as it involves digital currency.
The development of CBDC began last year when RBI conducted pilot testing for the use of digital rupee or CBDC. The purpose was to test wholesale usage and later evaluate retail usage as well.
Digital rupee is a new dimension in the Indian currency system, where notes and coins are replaced with digital or electronic form. It is based on blockchain technology and eliminates the need to physically carry cash. Transactions can be conducted digitally using this digital currency.
With the introduction of CBDC, the Indian banking sector is set to witness a significant transformation, making digital transactions more convenient and secure for the users.
en.gulfhindi.com News Summary
👉The Reserve Bank of India (RBI) has planned for the interoperability of Central Bank Digital Currency (CBDC) with Unified Payments Interface (UPI) in the country’s banking sector.
👉Approximately 9 banks have already implemented this system, and 3-4 other banks are currently testing it.
👉RBI is particularly interested in starting this system because it is different from other payment instruments as it involves the use of digital currency.
👉RBI conducted pilot testing of CBDC or digital rupee last year to test wholesale usage and later retail usage.
👉Digital rupee is the digital or electronic form of notes and coins based on blockchain technology.
👉With digital rupee, there is no need to carry physical notes or coins as transactions can be done digitally.
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