The Union Budget 2022 has finally been announced. With that, plans of the RBI Digital Rupee finally coming into existence have been revealed too. Yes, RBI’s very own digital currency that was making rounds of the internet last month, is very real indeed. Financial Minister Nirmala Sitharaman has announced that the digital currency will be launching in the new financial year of 2022-2023.
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RBI Digital Rupee: What’s the Deal?
According to Finance Minister Nirmala Sitharaman, the RBI digital rupee will bring forth a more efficient and cheaper currency management system. Blockchain is a huge market right now and this definitely is a step toward it by the Indian Government.
Furthermore, Sitharaman says that, “”The introduction of central bank digital currency will give a big boost to the digital economy. Digital currency will also be a more cheaper and efficient currency management system.” She goes on to say that, “It is therefore proposed to introduce digital rupee – using blockchain and other technologies – to be issued by the Reserve Bank of India, starting 2022-23.”
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The RBI Digital Rupee is a massive move towards pushing the Digital India campaign by the Government of India. Moreover, this comes during talks of the cryptocurrency regulation in India. Previously, RBI talked about how private cryptocurrencies could lead to financial instability.
Yesterday, on January 31, 2022, Principal Economic Adviser Sanjeev Sanyal said something vital. He reveals that the Government of India is taking a balanced view on cryptocurrency regulation. Further he states how financial stability issues, innovation and other factors do call for a balanced view.
Digital Banking Units To be Set Up
Another very important revelation comes in the form of Digital Banking Units being set up. These units will be set up across 75 districts. Sitharaman says that, “In recent years, digital banking, digital payments, and fintech innovations have grown at a rapid pace in the country. The government is continuously encouraging to ensure that the benefits of digital banking reach every nook and corner in a consumer-friendly manner.”
In addition, she states that, “Taking forward this agenda, and to mark 75 years of Independence, it’s proposed to set up 75 digital banking units in 75 districts of the country by scheduled commercial banks. The financial support for digital payment ecosystem – announced in the previous budget – will continue in 2022-23 as well.”
Moreover, Sitharaman also states that income from virtual digital asset transfer will be taxed at 30 per cent. Besides, no deduction shall also be allowed during the computation of such income. However, cost of acquisition is an exception.
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In favour of the RBI Digital Rupee and a paperless budget, we can also see Sitharaman with a tablet in hand, giving the speech. This is the second year she has gone completely paperless.
Sagnik Dasgupta
Tech enthusiast, gamer and somebody for whom music acts as a life capsule. Nothing fascinates me more than catchy headlines and John Mayer's guitar mastery.