SBI’s Dinesh Kumar Khara on what digital rupee will mean for economy, traditional banking There has to be a definite visibility of the total currency and to that extent it goes very well.”
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India’s central bank digital currency makes glitch-free start in the world of real-time tradesTransparency is not being compromised, will make letter to government public: RBI Guv Shaktikanta DasImpact of CBDC on the financial system and economy of India“It is not that it is going to eliminate physical banking. That will continue and digital banking is a part of our banking system currently also. I think it will only get further enhanced, that is all,” say Dinesh Kumar Khara, Chairman, SBIThe governor spoke about how CBDC or digital rupee is getting fast forwarded now. How will the impact trickle down on the banking sector as well as on consumers and businesses in your view?
As of now, they have introduced this CBDC on a pilot basis and the pilot has gone well. It was quite a successful pilot.So, feel encouraged by this pilot. Perhaps it will get scaled up into the retail sector also.
Essentially, it is addressing the need for additional currency in the economy and to that extent, perhaps the Indian economy has taken a very definite step and is making a very strong step in that direction. It will certainly be useful because whatever need was felt for digital currency, it is getting addressed through the CBDC which is also a regulated currency in the sense that RBI has got a complete stock of the currency for an economy which is emerging. There has to be a definite visibility of the total currency and to that extent it goes very well.
How would this impact traditional banking? How would it change the banking space in a permanent manner?
Some part of the digitisation has already been seen in the banking system and so it will be parallel to whatever was happening. Even now, it is not that it is going to eliminate physical banking. That will continue and digital banking is a part of our banking system currently also. I think it will only get further enhanced, that is all.
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India’s central bank digital currency makes glitch-free start in the world of real-time trades
Transparency is not being compromised, will make letter to government public: RBI Guv Shaktikanta Das
Impact of CBDC on the financial system and economy of India
« Back to recommendation storiesI don't want to see these stories becauseThey are not relevant to meThey disrupt the reading flowOthersSUBMIT On the inflation front, of course the governor has given his guidance that he sees things moving in a better direction going forward. Does that also mean that in your view, rate hikes will start slowing down? What will be the impact both in terms of inflation and rate hikes given the commentary today?
The way the governor has described the steps which have been taken to address the growth need as well as inflation control, it is very encouraging. Eventually for a country like ours, it augurs very well for the kind of traction which we will have going forward.
On deposits, the governor said that the last fortnight or so, deposit growth has been strong. Could you give us some kind of an overview as to how you are seeing deposits over the last fortnight? What kind of traction can be seen?
What the governor has mentioned is that since the festival season is off for the time being, the currency which was there with the public will come back to the system. Apart from that, the government spending will also come back to the banking system so that will ease out the deposit position.
This story originally appeared on: India Times - Author:Tax Cognition
