Reserve Bank implementing central digital currency in phases: RBI executive director Ajay Kumar Choudhary

New Delhi: The Reserve Bank of India is in the process of implementing the Central Bank Digital Currency (CBDC) in a phased manner for the wholesale and retail segments, said its executive director (fintech), Ajay Kumar Choudhary. The CBDC will be a sovereign-backed digital currency.

Passage of the Finance Bill 2022 has enabled RBI to conduct a pilot and subsequent issuance of CBDC, Choudhary while delivering a keynote address at 'PICUP Fintech Conference & Awards' by industry association FICCI on Wednesday.

Choudhary said RBI has fostered innovation and it is keeping a close eye on the benefits and risks associated with innovative products and services offered by fintechs. "The challenge for policymakers is to maximise the benefits of fintech while minimising the potential risk," he said.


Punjab National Bank managing director Atul Kumar Goel said banks have recognised the importance of collaboration with emerging fintech. "Banks and fintech companies are not competitors," he said.