A PARADIGM SHIFT IN INDIAN BANKING WITH REFERENCE TO CBDC & E-RUPEE

Abstract

The issue of CBDC by different central banks in the world to regulate crypto market is becoming sincere deliberations now a days. Crypto currency market is an encrypted algorithm that upholds secrecy of transaction between sender & receiver & needs to be delimited with certain norms. To safeguard economic transactions, central banks & its stockholders designed a digital currency with the help of technical supports.

These Digital currency or fiat currency is going to bring a paradigm shift in the life of common people very soon. The Reserve Bank of India is currently steering samples of operational mechanism of CBDC or E-rupee.

Indian economy since adoption of digitalisation has pushed economy where classy amounts of payments are carried with online modes, wallets as well as interface. It also has raised a question on cyber security & frauds. Central banks are making efforts to aware people on frauds they might encounter more in coming future.

This paper is an attempt to know the deliberations going around regarding Central Bank Digital Currency. It is based on available literature. Introduction of CBDC in country like India will help enhancement of Financial Inclusion, Employment through outsourcing to Digitech companies & reaching to unbanked population as early as possible.

CBDC with strong asset backed support will form a new path to economy if it is accepted at international level as a currency to trade with.