Digital rupee can be exchanged for cash: PM

Prime Minister Narendra Modi on Wednesday said the digital rupee, proposed in the union budget, could be exchanged for cash and will open new opportunities in the fintech sector.

Addressing the ‘Atmanirbha Arthavyavastha’ (self-reliant economy) symposium organised by the BJP, he said the central bank digital currency or the digital rupee will make online payments more secure and risk free and boost digital economy in the years to come.

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“The digital rupee will be the digital form of our physical rupee and will regulated by the RBI. This will be such a system that will enable exchange of physical currency with digital currency,” Modi said at the virtual symposium that was attended by chief ministers of BJP-ruled states and party workers across the country. “Central Bank Digital Currency (CBDC) will strengthen the digital economy… If anyone makes a payment in digital currency, you will be able to change it to cash,” he said.

Modi said the launch of CBDC will make digital payments and online transfer of funds more secure and risk free. “This will also lead to ease in development of global digital payment systems,” he said.

He said the digital rupee will revolutionise the fintech sector by creating new opportunities and lessen the burden in handling, printing, logistics management of cash. Finance Minister Nirmala Sitharaman had announced that India will launch a ‘digital rupee’ in 2022-23 using blockchain and other technologies.