- GS-3: Money & Banking; RBI and its monetary Policy
- GS-2: Government Policies and Interventions for Development in various sectors and Issues arising out of their Design and Implementation.
Context: Reserve Bank of India (RBI) has announced the launch of India’s much-awaited Central Bank Digital Currency (CBDC), E-Rupee, a sort of official cryptocurrency, for retail users from December 1.
- RBI defines the CBDC as the digital form of currency notes issued by a central bank. It is a sovereign or entirely independent currency issued by the central bank (in this case, RBI), in accordance with the country’s monetary policy.
Main Practice Question: Why is digital rupee the need of the time? What do you think are the challenges in adoption of such digital currency?
Note: Write answer his question in the comment section.