India’s RBI Cautious on CBDC Rollout, Focuses on Digital Currency Security
India is expanding its payment links with countries like Sri Lanka, the UAE, and others, as part of its strategy to strengthen cross-border financial networks.
Reserve Bank of India (RBI) Deputy Governor T. Rabi Sankar highlighted these efforts at a conference in Cebu, Philippines, noting existing partnerships with Sri Lanka, Bhutan, and Nepal, while also working with ASEAN nations to develop a cross-border instant payment platform.
Sankar also touched on India’s progress with its central bank digital currency (CBDC), which is currently in the pilot phase. The RBI is proceeding cautiously with its broader rollout, focusing on security and the impact on monetary policy and banking systems. RBI Governor Shaktikanta Das views CBDCs as the future of money, especially for cost-effective cross-border payments, trade, and remittances.
While India has yet to implement specific regulations for cryptocurrencies, it has introduced a 30% tax on crypto gains and a 1% Tax Deducted at Source (TDS) on large transactions. Finance Minister Nirmala Sitharaman has emphasized the importance of international collaboration on crypto regulations, advocating for a unified framework during India’s G20 presidency.
Clever Robot News Desk 22nd November 2024
