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Presenting the Union Budget 2022-23, Finance Minister Nirmala Sitharaman said that the digital rupee will be introduced by the Reserve Bank of India (RBI) in 2022 to boost the Indian economy.

"Introduction of Central Bank Digital Currency (CBDC) will give a big boost to thedigital economy. Digital currency will also lead to a more efficient and cheaper currency management system. 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,"Finance Minister Sitharaman said.

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"Introduction of central digital currency using blockchain to be issued by RBI in 22-23. It is expected that the tax regulation of such currency is also made clear, as there are aspects of classification (capital asset or otherwise), rate of taxation, disclosure requirements that have to be addressed," said Tapati Ghose, Partner, Deloitte India.

“Digital Rupee can have many use case scenarios in real world such as programmable payments for subsidies and by financial institutions for faster lending and payments. We could see a shift to cashless economy in a near future but for the time being, physical cash will continue to exist as it is necessary for the unorganized sector. This can give impetus to government’s stress on cashless payments and positively change the banking scenario. As the usage of the Digital Rupee increases, it could also benefit in things like cross-border remittances, an environment could be created for interoperability whereby faster real-time remittance occurs. Overall the cost of transactions would reduce for the government and businesses," said Rajat Prakash, Managing Partner, Athena Legal - Crypto.

Ritesh Kumar, Partner, IndusLaw sid," Introduction of central bank digital currency using block chain issued by RBI is a very big move. While there is silence on Crypto, one should wait to watch the manner and form in which the digital Rupee will be launched and its shadow impact on Crypto."

“The announcement on the launch of a Digital Rupee using blockchain issued by the RBI will familiarise Indians with the benefits and efficiency of virtual currency, building an appetite for the crypto, blockchain and the multitudes of innovations and employment opportunities that these technologies are capable of fostering," said Avinash Shekhar, CEO, ZebPay.

Earlier, the Union Cabinet approved the Budget 2022-23 presented by Finance Minister Nirmala Sitharaman in Parliament.

Earlier today, Sitharaman met President Ram Nath Kovind ahead of the Budget presentation. She was accompanied by Ministers of State for Finance Pankaj Chaudhary, Bhagwat Karad and other officials from the Ministry.

Amid the ongoing coronavirus pandemic, replacing her signature 'bahi khata', she opted to carry the documents in a tablet, which was wrapped in a red-coloured cover with the national emblem emblazoned on it. 

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