The Reserve Bank of India (RBI) said it has prepared a plan for a three-step transition to the introduction of a central bank digital currency (CBDC).
“The Reserve Bank is in the process of introducing a central bank digital currency in India. The CBDC design should be consistent with the stated objectives of monetary policy, financial stability and efficient operation of monetary and payment systems,” the Reserve Bank of India annual report for 2022 said.
“The Reserve Bank proposes to take a phased approach to implementing CBDC, going step by step through the proof-of-concept, pilot and launch phases. Accordingly, we are exploring appropriate CBDC design elements that can be implemented with little or no interruption,” the report said.
The bank also said that the digital rupee launch is planned by the end of 2023.