RBI proposes graded approach to CBDC introduction

The Reserve Bank of India said on Friday that it is proposing to adopt a graded approach to the introduction of Central Bank Digital Currency CBDC in compliance with the objectives of monetary policy, financial stability and efficient operations of currency and payment systems. The Reserve Bank proposes to adopt a graded approach to the introduction of CBDC, going step by step through stages of Proof of Concept 12, pilots and the launch, the RBI said in its annual report for 2021 -- 22. The RBI said it was looking at the pros and cons of the introduction of CBDC in India and the appropriate design elements of CBDCs that could be implemented with little or no disruption. The Reserve Bank is preparing to introduce a central bank digital currency, CBDC, in India. It said that CBDC needs to be designed to be in conformity with the stated objectives of monetary policy, financial stability and efficient operations of currency and payment systems. The RBI said that the design of CBDC must be in conformity with the stated objectives of monetary policy, financial stability and efficient operations of currency and payment systems. The introduction of CBDC has been announced in the Union Budget 2022 -- 23 and an amendment to the RBI Act, 1934 has been included in the Finance Bill, 2022. The Finance Bill, 2022, was enacted, providing a legal framework for the launch of CBDC, the central bank said in a statement.