Published: 01st February 2022
India will soon have its own Digital Rupee from 2022-23: FM announces at Union Budget 2022
FM Sitharaman said that it is a much more efficient system of management and thus the government will venture into it
At a time when crypto is the buzzword, the Finance Minister proposed during her Budget speech that India will be rolling out a digital currency of its own in 2022-23. This Digital Rupee will be issued by the Reserve Bank of India, said the FM.
FM Sitharaman said that it is a much more efficient system of management and thus, the government will venture into it. "The introduction of a Central Bank Digital Currency will be a big boost to the digital economy. Digital currency will also lead to a more efficient and cheaper currency management system. it is therefore proposed to introduce the Digital Rupee using Blockchain and other technologies to be issued by the Reserve Bank of India, starting 2022-23," said Sitharaman.
But this is not the first time it is being discussed. The Ministry of Finance, in a written reply, said during the Winter Session that it has received a proposal from RBI asking for an amendment to the Reserve Bank of India Act, 1934, to tweak the definition of ‘bank note’ to include currency in digital form. “Central Bank Digital Currency (CBDC) is introduced by a Central Bank. The government has received a proposal from the Reserve Bank of India (RBI) in October 2021 for the amendment to the Reserve Bank of India Act, 1934 to enhance the scope of the definition of ‘bank note’ to include currency in digital form. RBI has been examining use cases and working out a phased implementation strategy for the introduction of CBDC with little or no disruption," replied Minister of State in the Finance Ministry, Pankaj Chaudhary.
FM Sitharaman began her Budget speech this year by expressing empathy for those who suffered during the pandemic but assured that India is on a revival path and the country's growth is estimated to be at 9.2 per cent, the highest among all large economies, claimed the Finance Minister.
The FM said that the Aatmanirbhar Bharat approach has received an excellent response. "Budget 2022 has provided a sharp increase in provision for public investment and capital expenditure. This budget will provide the impetus for growth. We strive to provide the necessary ecosystem for the middle class," she added.
The Finance Minister tabled the budget at 11 am on February 1. President Ram Nath Kovind kicked off the Budget Session of the Parliament on January 31, following which FM Sitharaman presented the Economic Survey.