Budget 2022: Digital Rupee will render more transparency to real estate transactions

The Reserve Bank of India (RBI) will introduce digital currency in the next financial year beginning April 2022 to boost the digital economy and efficient currency management, Finance Minister Nirmala Sitharaman proposed in her Budget 2022.

The introduction of a central bank digital currency will give 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 digital rupee using blockchain and other technologies to be issued by the Reserve Bank of India, starting 2022-23," Sitharaman said.

'India's Union Budget 2022-23 has brought forth a host of benefits across industries. For real estate, a reduction in corporate surcharge from 12% to 7% is good news for the developer community. The issuance of the digital rupee by RBI using blockchain technology will render more transparency to real estate transactions. Affordable housing has also got a boost with ₹48,000 crore allocated for the completion of construction of 80 lakh houses under PM Awas Yojana. ₹60,000 crore have been additionally allocated for the Har Ghar Nal program. Last but not the least, an additional allocation of ₹19,500 crore for manufacturing solar modules augurs well for real estate," said Atul Goel. MD, Goel Ganga Group & President (Elect.), NAREDCO Pune.

The real estate sector has faced severe headwinds in the recent past but is hopeful of solid recovery with several key budget announcements. 

“With a focus on the construction of over 80 lakh affordable houses by the year 2023, focus on urban development via the concept of mega cities and enhanced focus on Tier 2 and Tier 3 cites will provide the much-needed impetus to the real estate sector,” said Annuj Goel, MD, Goel Ganga Developments

Overall, this is a progressive, supportive, and budget with increased focus on infrastructure development, he added.