Digital Rupee: Explained - What is it? How it works? Technology used? Its issuer? All you need to know about CBDC

The Minister for Finance & Corporate Affairs, Nirmala Sitharaman while presenting the Union Budget 2022-23 announced the introduction of Digital Rupee. Here is all you need to know about Central Bank Digital Currency (CBDC) 'Digital Rupee':-

Why CBDC Digital Rupee? What is its need?

FM Sitharaman said - Introduction of Central Bank Digital Currency (CBDC) will give a big boost to digital economy.

Moreover, digital currency will also lead to a more efficient and cheaper currency management system. 

What is Central Bank Digital Currency (CBDC) 'Digital Rupee'? How it works?

- Digital Rupee will be an Indian Digital Currency.

- Digital Rupee will work using blockchain and other technologies.

How Central Bank Digital Currency (CBDC) 'Digital Rupee' will be issued?

- To be issued by the Reserve Bank of India (RBI) starting 2022-23. 

Budget 2022: Digital Banking

Presenting Budget 2022, Nirmala Sitharaman had said that in recent years, digital banking, digital payments and fintech innovations have grown at a rapid pace in the country. "Government is continuously encouraging these sectors to ensure that the benefits of digital banking reach every nook and corner of the country in a consumer-friendly manner."

Taking forward this agenda, and to mark 75 years of our independence, the Finance Minister announced that it is proposed to set up 75 Digital Banking Units (DBUs) in 75 districts of the country by Scheduled Commercial Banks.