On Friday, the Reserve Bank of India (RBI) published its Report on Currency and Finance. It included some observations about central bank digital currency (CBDC). But it’s fair to say the central bank didn’t reveal anything about its own plans and the report only spent a few paragraphs on the topic.
RBI highlighted some CBDC benefits, such as a central bank’s ability to monitor transactions and distribute ‘helicopter money’ as aid during difficult times. It also noted the potential to target money distribution towards particular goods to either improve demand or aid social welfare.
While not mentioned in the report, India has an existing food ration system targeted at those below the poverty line (BPL). In that case, citizens are issued with BPL cards which enables them to buy food at heavily subsidized prices. If a CBDC could be made sufficiently accessible through a card, that might work here.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
