E-rupee will have to battle consumer indifference

One of the more eye-catching elements of the Union Budget was the pledge that the RBI would introduce a Central Bank Digital Currency (CBDC) in the upcoming fiscal year. That would make the Reserve Bank a global front-runner. But it is unlikely that key design decisions can be made and the technical architecture implemented within a few months. We doubt that an “e-rupee” will be in many people’s (digital) wallets any time soon. Further ahead, it is not clear cut what CBDCs offer to consumers in countries - such as India - that already have efficient mobile payments systems.