Reserve Bank of India Governor Shaktikanta Das said CBDC will be a big transformation of the way business is done – the way transactions are done and emphasized that RBI is among very few central banks around the world have taken this initiative. While speaking to FIBAC on Wednesday, Governor Shaktikanta Das said, “Yesterday, we launched the test of our digital currency project, Central Bank Digital Currency ( CBDC) It is truly a landmark moment in the monetary history of our country. In the future it will be a landmark moment. It will be a landmark achievement. so far as far as the performance of the entire economy is concerned.”
FIBAC is an annual banking conference, organized by Federation of Indian Chambers of Commerce and Industry (FICCI) and the Indian Bankers Association (IBA).
At the conference, Das said, “Will try and launch CBDC CBDC is a form of digital currency issued by a central bank.
Das announced that the retail portion of the CBDC beta will be launched later this month, adding, “We’ll announce a separate date, but I don’t want to give a target date when the CBDC will be launched.” out at full-scale, because this is something that we have to do very carefully. It’s the first time in the world. We don’t want to rush it, we want to learn from it.”
Das also announced that end-to-end digitization of Kisan Credit Card (KCC) loans will be rolled out nationwide in the calendar year 2023. “Based on the lessons and experiences of the digitization pilot project At the end of KCC Loans, our effort is to roll it out on a full scale if all goes well, not only for farmer loans but also for SME loans. We hope to roll it out nationally in the calendar year 2023,” he said.
RBI started a pilot project of end-to-end digitization of Kisan Credit Card (KCC) loans in September 2022 in selected districts of Madhya Pradesh and Tamil Nadu with Union Bank of India and Federal Bank, partner banks respectively and with the active cooperation of the respective state governments.
This KCC lending digitization pilot project is expected to play a key role in facilitating the flow of credit to the underserved and underserved rural population by makes the credit process faster and more efficient. When fully implemented, this has the potential to transform the country’s rural credit delivery system,” the Governor added.