4 min read.Updated: 13 Jan 2022, 12:47 AM ISTMadan Sabnavis
The concept is on the cards but we must also consider the consequences of a potential incineration of paper cash enabled by it
Just think of this situation. It is eight o’clock in the evening, and there is an announcement made that from here on, all rupee notes are being withdrawn and replaced with a digital currency called CBDR, short for Central Bank Digital Rupee. People need not panic and have a week’s time to visit a branch of the Reserve Bank of India (RBI) or any public sector bank and exchange all their currency for digital rupees. No questions will be asked. An account will be opened with RBI, and based on one’s Aadhaar card and PAN card details, the amount will be automatically transferred to it for access through a registered mobile phone. The transaction will take just a few minutes and one can step out of the branch with money loaded on one’s handset. Does this sound fantastic? It may sound as much, but this is a credible possibility.