Page 34 - The Indian EYE 123022

BUSINESS EYE DECEMBER 30, 2022 | The Indian Eye 34

From cashless to digital:

How Govt is adding a new feature

to rupee payments

Digital currency is expected to complement rather than to replace the current forms of currency and it

would provide an additional avenue to the users as a payment instrument

OUR BUREAU

New Delhi/Mumbai
ndia has taken a major step in
launching the digital version
Iof Rupee, the Indian currency.
Terming the launch of digital rupee,
a historic milestone, RBI executive
director Ajay Kumar Choudhary on
Thursday said the currency would
bring in a lot of operational efficiency
in the system and will foster financial
inclusion.
As per the central bank digital
currency (CBDC) tracker, almost 105
countries representing 95 per cent of
the world’s GDP have taken steps
to inculcate digital currency in their
ecosystem. Around 50 countries are
at the advanced phase of exploration
to launch the digital currency, while
10 countries have fully launched the
digital currency, he said at an event
organized by PHD Chambers of
Commerce and Industry (PHDCCI). Digital rupee will add the resilience associated with innovation in the way payments are made (File photo)
Digital rupee will add the resil-
ience associated with innovation in inclusive, competitive, and respon- Retail, Utilities, Education, Travel nations is decided by the government
the way payments are made, he said, sive to innovation and tech changes. and Hospitality for digital payments,” in consultation with the Reserve
adding, it will also boost innovation Explaining the difference be- Ramesh Narasimhan, Chief Execu- Bank of India (RBI). “As per RBI,
in the cross-border payment space. tween digital currency and UPI, tive Officer, of Worldline India, said no fresh indent has been placed with
CBDC will give the public the Choudhary said that like physical in the statement. the presses for printing of Rs 2000
desired experience while ensuring currency, digital currency issued by “The in-principle authorization denomination banknotes from 2018-
consumer protection but avoiding the central bank is the RBI’s liability from RBI is a testimony to our com- 19 onwards,” Union Minister of
the damaging social and economic whereas UPI is a means of payment mitment towards building a digital State for Finance Pankaj Chaudhary
consequences, he added. and any transaction through UPI is payment ecosystem in India,” the said in response to a question about
RBI has already launched the the respective bank’s liability. CEO said. the status of 2,000 denomination cur-
Central Bank Digital Currency CB- Earlier, digital payments services Worldline ePayments India, part rency notes being printed in 2019-20,
DC-W and CBDC-R on a pilot basis platform Worldline ePayments India of Worldline group, offers solutions 2020-21 and 2021-22.
for the Indian market. CBDC-W and on Wednesday said it has received in for all sorts of payment needs offer- In reply to another question on
CBDC-R refer to wholesale and re- principle approval from the Reserve ing in-store, online, and omnichan- whether the government is aware of
tail, respectively. Bank of India to act as a payment ag- nel payments to its customers. the fake currency notes in the coun-
Digital currency is expected to gregator (PA). Worldline ePayments The CEO added RBI has been try, the minister quoting the Reserve
complement rather than to replace India received the communication proactive in introducing regulations Bank of India said the total number
the current forms of currency and it from RBI on Tuesday, it said in a and frameworks to help the entire of counterfeit currency notes detect-
would provide an additional avenue statement. The authorization by the digital ecosystem and to increase the ed in the banking system for the fi-
to the users as a payment instrument. RBI was under the provisions of the adoption of digital payments further. nancial year 2021-22 that ended in
He stated that the Reserve Bank Guidelines on Regulation of Pay- Recently, the government in- March stood at 230,971 pieces.
of India would be taking all steps to ment dated March 17, 2020. formed the Rajya Sabha that there The minister said the RBI regu-
ensure that the issuance of CBDC “We’ve been in the Indian mar- has been no fresh indent being larly conducts training programmes
follows a calibrated and nuanced ap- ket for more than two decades and placed with the press for the print- on the detection of counterfeit notes
proach with adequate safeguards to have built a leadership position. We ing of Rs 2,000 denomination notes for employees/officers of banks and
tackle any potential difficulties and work with merchants from various from 2018-19 onwards. The printing other organizations handling a large
risks so as to build a system which is segments such as eCommerce, BFSI, of banknotes of particular denomi- amount of cash.

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