CBDC to enhance digitisation of traditional banking

“Some part of the digitisation has already been seen in the banking system, so it will be parallel to whatever was happening. Even now, it is not that it is going to eliminate physical banking. That will continue and digital banking is a part of our banking system currently also. I think it will only get further enhanced, that is all,” he told ET Now.

The SBI Chairman said CBDC is addressing the need for additional currency in the economy as the need for a digital currency is getting addressed through it.

“Essentially, it is addressing the need for additional currency in the economy. Perhaps the Indian economy has taken a very definite step and is making a very strong step in that direction. It will certainly be useful because whatever need was felt for digital currency, it is getting addressed through the CBDC, a regulated currency. The RBI has got a complete stock of the currency for an emerging economy,” said Khara.

As Mint reported earlier, government securities worth ₹275 crore were traded using the RBI CBDC on Tuesday, November 1, on the first day of a pilot project in the wholesale segment.