RBI in talks with central banks to launch India’s own digital currency

The Reserve Bank will introduce its own digital currency
The Reserve Bank has made an important statement regarding digital currency. Deputy Governor of the Reserve Bank T. Speaking at an event here on Sunday, Ravi Shankar said the RBI was working on a strategy to introduce its own digital currency in a phased manner. "We have started the process of introducing digital currency for wholesale and retail on an experimental basis from the central bank," Ravi Shankar said. Central banks of many countries of the world are working in this direction.
Ravishankar further said that under CBDC, many consumers should be protected from the volatility of digital currency and the dire situation that arises due to it as the current digital currency has no government guarantee. Therefore, the central banks of many countries are exploring the possibility of CBDC. A high-level inter-ministerial committee appointed by the finance ministry has scrutinized the policy and law framework. And it is he who has recommended the introduction of digital currency to the CBDC.
This will require changes in the law. As per the Reserve Bank of India Act, the present provision has been made keeping in view the physical nature of the currency. Coins, Foreign Exchange Management Act and it needs to be amended. Digital currency is called digital central bank currency and the country whose central bank issues it requires government approval. Speaking of India, we can call it the digital rupee. Digital currencies come in two forms. Retail and wholesale. Retail can be used by the general public and companies, while wholesale can be used by financial institutions.