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RBI exploring need for crypto currency as digital payments rise Reuters Synopsis "Private digital currencies (PDCs) / virtual currencies (VCs) / crypto currencies (CCs) have gained popularity in recent years. In India, the regulators and governments have been sceptical about these currencies and are apprehensive about the asso... By Joel Rebello, ET Bureau Last Updated: Jan 25, 2021, 07:51 PM IST 2 MUMBAI: The Reserve Bank of India (RBI) is exploring whether there is a need for a digital version of fiat or crypto currency and in case there is, then how to operationalise it, the central bank said in a booklet covering the journey of payment and settlement systems in India during t2010 till the end of 2020. "Private digital currencies (PDCs) / virtual currencies (VCs) / crypto currencies (CCs) have gained popularity in recent years. In India, the regulators and governments have been sceptical about these currencies and are apprehensive about the associated risks. Nevertheless, RBI is exploring the possibility as to whether there is a need for a digital version of fiat currency and in case there is, then how to operationalise it," the central bank said. ADVERTISEMENT RBI will also publish a digital payments index (DPI) to effectively capture the extent of digitisation of payments in the country and accurately portray the penetration and deepening of various digital payment modes. Get all insights on PFC Explore "The RBI-DPI has since been constructed with March 2018 as the base period, i.e. DPI score for March 2018 is set at 100. RBI-DPI was published on January 01, 2021 and the DPI score for March 2019 and March 2020 were 153.47 and 207.84, respectively," RBI said. ADVERTISEMENT Digital payment transactions in India have risen to 3435 crore processing Rs 1623 lakh crore by value in March 2020 from just 96 crore transaction processing Rs 498 crore by value in March 2011 representing a compounded annual growth rate of 12.54% and 43.01% in terms of volume and value, respectively, the RBI said. Global Data, a data and analytics company, in its 2017 consumer payments insight survey, observed that India is one of the top markets globally in terms of digital cash adoption with 55.4% survey respondents indicating usage of digital cash. India is followed by China and Denmark. "The adoption level in India is much higher compared to many of the developed markets such as the US and the UK, where consumers predominantly use cards," RBI said. The central bank plans to engage with the other sectoral regulators - SEBI, IRDA, TRAI, etc., to remove frictions in regulation and ease system operator / customer comfort and has set-up an inter-regulatory committee on digital payments with officials from other financial sector regulators. "The committee is expected to work towards overcoming frictions in digital payments arising out of connectivity issues, exchange inputs / references between / amongst regulators, enhance awareness about digital payments, facilitate digital financial inclusion, etc," RBI said. ADVERTISEMENT (Catch all the Business News, Breaking News Events and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily Market Updates & Live Business News. READ MORE NEWS ON TRAIIRDADIGITAL PAYMENTSRBICRYTO CURRENCYSEBI 2 COMMENTS ON THIS STORY 16 hours ago Vignesh Iyer Riches and government fears the crypto because they cannot hold or impose regulations on digital currencies. Predominantly all the transactions performed are transparent over the network though impossible to tamper due to consensus algorithm, thanks to block chain.

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RBI exploring need for crypto currency as digital payments rise Reuters Synopsis "Private digital currencies (PDCs) / virtual currencies (VCs) / crypto currencies (CCs) have gained popularity in recent years. In India, the regulators and governments have been sceptical about these currencies and are apprehensive about the asso... By Joel Rebello, ET Bureau Last Updated: Jan 25, 2021, 07:51 PM IST 2 MUMBAI: The Reserve Bank of India (RBI) is exploring whether there is a need for a digital version of fiat or crypto currency and in case there is, then how to operationalise it, the central bank said in a booklet covering the journey of payment and settlement systems in India during t2010 till the end of 2020. "Private digital currencies (PDCs) / virtual currencies (VCs) / crypto currencies (CCs) have gained popularity in recent years. In India, the regulators and governments have been sceptical about these currencies and are apprehensive about the associated risks. Nevertheless, RBI is exploring the possibility as to whether there is a need for a digital version of fiat currency and in case there is, then how to operationalise it," the central bank said. ADVERTISEMENT RBI will also publish a digital payments index (DPI) to effectively capture the extent of digitisation of payments in the country and accurately portray the penetration and deepening of various digital payment modes. Get all insights on PFC Explore "The RBI-DPI has since been constructed with March 2018 as the base period, i.e. DPI score for March 2018 is set at 100. RBI-DPI was published on January 01, 2021 and the DPI score for March 2019 and March 2020 were 153.47 and 207.84, respectively," RBI said. ADVERTISEMENT Digital payment transactions in India have risen to 3435 crore processing Rs 1623 lakh crore by value in March 2020 from just 96 crore transaction processing Rs 498 crore by value in March 2011 representing a compounded annual growth rate of 12.54% and 43.01% in terms of volume and value, respectively, the RBI said. Global Data, a data and analytics company, in its 2017 consumer payments insight survey, observed that India is one of the top markets globally in terms of digital cash adoption with 55.4% survey respondents indicating usage of digital cash. India is followed by China and Denmark. "The adoption level in India is much higher compared to many of the developed markets such as the US and the UK, where consumers predominantly use cards," RBI said. The central bank plans to engage with the other sectoral regulators - SEBI, IRDA, TRAI, etc., to remove frictions in regulation and ease system operator / customer comfort and has set-up an inter-regulatory committee on digital payments with officials from other financial sector regulators. "The committee is expected to work towards overcoming frictions in digital payments arising out of connectivity issues, exchange inputs / references between / amongst regulators, enhance awareness about digital payments, facilitate digital financial inclusion, etc," RBI said. ADVERTISEMENT (Catch all the Business News, Breaking News Events and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily Market Updates & Live Business News. READ MORE NEWS ON TRAIIRDADIGITAL PAYMENTSRBICRYTO CURRENCYSEBI 2 COMMENTS ON THIS STORY 16 hours ago Vignesh Iyer Riches and government fears the crypto because they cannot hold or impose regulations on digital currencies. Predominantly all the transactions performed are transparent over the network though impossible to tamper due to consensus algorithm, thanks to block chain.