Research article

CENTRAL BANK DIGITAL CURRENCY IMPLICATION IN RETAIL SECTOR IN INDIAN SCENARIO

Ravinder Kumar

Online First: January 30, 2023


Digitalisation in current decade is moving very fast in developed and developing countries. In this era, International attention in the potential issuance of Central Bank Digital Currency (CBDC) has recently increased that may be seen as a digital version of currency. In addition to the current type of currency, the CBDC offers another choice. It is essentially identical to banknotes, but because it is digital, it is probably simpler, faster, and less expensive. It also offers all the advantages for transactions that other digital payment systems do. In order to help researchers, policy makers, and practitioners take a closer look at CBDC, this paper reviews recent advancements in CBDC research with the goal of providing the knowledge of this field. The research paper also explains the RBI approach regarding the CBDC. The current research study also examined CBDC consequences for the banking system, monetary policy, financial soundness, and some other privacy matters. Reserve Bank of India also starts its CBDC-digital rupee or e-rupee for the common man on December 1, 2022.

Keywords

Digitalization, CBDC, RBI, and e-Rupee