Union Budget 2022: Reserve Bank of India to introduce Digital Rupee

In a major announcement concerning the digital currency, the Minister for Finance & Corporate Affairs, Nirmala Sitharaman has introduced a Digital Rupee for the first time in the country.

While announcing the Union Budget 2022, Sitharaman said that the Reserve Bank of India will issue the Digital Rupee from 2022-23.

“Presenting the Union Budget 2022-23 in the Parliament here today, the Finance Minister said that the Central Bank Digital Currency (CBDC) will give a big boost to digital economy. Digital currency will also lead to a more efficient and cheaper currency management system, the Minister stated. The Digital Currency will use block chain and other technologies,” a press release issued by the Ministry of Finance said.

The release added, “Smt Nirmala Sitharaman 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.”

Besides digital currency, in another crucial announcement, the Finance Minister said that in 2022, 100 per cent of 1.5 lakh post offices will come on the core banking system enabling financial inclusion and access to accounts through net banking, mobile banking, ATMs, and also provide online transfer of funds between post office accounts and bank accounts.