Decision to introduce ‘Digital Rupee’ was taken after consultation with RBI: Sitharaman

Union Finance Minister Nirmala Sitharaman has said that the central bank-run digital currency has clear benefits and the decision to introduce ‘Digital Rupee’ has been taken in consultation with the Reserve Bank of India (RBI).

Addressing the annual summit of the India Global Forum here on Tuesday, Sitharaman said in response to a question on the digital rupee, “It is a deliberate decision in consultation with the central bank – Reserve Bank of India… Let’s design it the way they want to bring it, but we expect the central bank to bring the currency this year.

“We believe that central bank-operated digital currency has clear benefits, as in today’s era of bulk payments between countries, large transactions between institutions and large transactions between the central banks of each country, these All can be better done through digital currency.

When asked about regulating the crypto sector, the Finance Minister said that the government will take a decision after consultation with the stakeholders.

“Consultations are on… Anyone interested in this area is welcome to make suggestions,” he said. The Ministry will consider it after the process of consultation is completed. We need to make sure that we are not going beyond any legal requirement, after that we will come out with our stand on it.”

Asked if she sees a future for crypto in India, she said, “Many Indians see great potential in it and that’s why I see revenue potential in it.”

Regarding the recently presented general budget, Sitharaman said that the mention of ‘Amrit Kaal’ in the budget is in relation to greater digitization and use of technology.

He said that 75 Digital Banking Units (DBUs) have been announced in this budget.

Sitharaman said that India needed these, because despite a nationalized banking network in 75 years of independence, banking and financial inclusion could not be completed.