MUMBAI: The Reserve Bank of India, which is aiming for a million retail central bank digital currency (CBDC) transactions per day by the end of the current year, considers more efficient and cheaper cross-border transactions as a key aim in the development of the digital currency, deputy governor T Rabi Sankar said.
“The biggest advantage that we will get in CBDCs is in cross-border transactions. The current global payment system… the correspondent banking arrangement that exists has two features in my view that add inefficiencies,” Sankar said at an event organised by the Indian Banks’ Association on Tuesday.
RBI deputy governor T Rabi Sankar pointed out that transactions through CBDCs bypass intermediaries and are instantaneous. In its aim to increase the acceptability of the CBDC, the RBI will take build on the existing network of the Unified Payment Interface and introduce interoperability for CBDC transactions, Sankar said.
