Sitharaman announces the introduction of Digital Rupee

Finance Minister Nirmala Sitharaman arriving at Parliament House to present the Union Budget 2022-23, in New Delhi on February 1, 2022.

Sitharaman announces the introduction of Digital Rupee

Banks to set up 75 digital banking units in 75 districts

New Delhi, February 1, 2022

Finance Minister Nirmala Sitharaman today announced the introduction of Digital Rupee to be issued by the Reserve Bank of India starting 2022-23.

Presenting the Union Budget 2022-23 in the Lok Sabha here, Sitharaman said that the Central Bank Digital Currency (CBDC) would give a big boost to the digital economy.

She said that the digital currency would also lead to a more efficient and cheaper currency management system.

The Minister said the digital currency would use blockchain and other technologies.

She noted that, in recent years, digital banking, digital payments and fintech innovations had grown at a rapid pace in the country.

The Government is continuously encouraging these sectors to ensure that the benefits of digital banking reached every nook and corner of the country in a consumer-friendly manner.

Taking forward this agenda, and to mark 75 years of the country's independence, the Finance Minister announced that it is proposed to set up 75 Digital Banking Units (DBUs) in 75 districts of the country by Scheduled Commercial Banks.

She also said that, in 2022, all 1.5 lakh post offices in the country would come on the core banking system, enabling financial inclusion and access to accounts through net banking, mobile banking, ATMs, and also provide online transfer of funds between post office accounts and bank accounts.

This will be helpful, especially for farmers and senior citizens in rural areas, enabling interoperability and financial inclusion, she said.

Sitharaman said that the government's financial support for the digital payment ecosystem, announced in the previous Budget, would continue in 2022-23.

"This will encourage further adoption of digital payments. There will also be a focus to promote use of payment platforms that are economical and user friendly," she added.

NNN

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