India to Launch Digital Rupee in 2024: Finance Minister Sitharaman

Nirmala Sitharaman, the Finance Minister of India, commented on the nation’s pending central bank digital currency (CBDC) at a business roundtable on “Investing in India’s Digital Revolution” in San Francisco last week.

The event, which was organized by the Federation of Indian Chambers of Commerce & Industry (FICCI)—an independent trade association and advocacy group in India—was hosted by the US-India Strategic Partnership Forum (USISPF).

At the event, the finance minister reiterated the Indian government and the Reserve Bank of India (RBI) planned to release the digital rupee in 2023, noting:

“The government and RBI are looking into its several commercial use purposes and not just financial inclusion.”

Sitharaman added that financial inclusion “is largely achieved through the JAM trinity (Jan Dhan-Aadhaar-Mobile).” The minister previously noted: “The JAM trinity concept of the Narendra Modi government helped to reach the farthest person in the country.”

The Indian minister stressed that the government was keen on promoting digital adoption across industries, explaining: “Central bank digital currency, digital banks, and digital university were announced in the Union Budget. There is a continuous digital nudge by the government across sectors.”

India to Benefit from Digital Rupee

Speaking on the potential benefits of the digital rupee, the finance minister noted that the CBDC would likely boost the nation’s digital economy, noting:

“Digital currency will also lead to a more efficient and cheaper currency management system.”

Sitharaman also revealed that the Indian government was working on a crypto policy for India, adding that the decision will not be rushed. Adding to this sentiment, RBI Deputy Governor T. Rabi Sankar recently noted that the apex bank would launch the Indian CBDC “in a very calibrated, graduated manner, assessing impact all along the line.”

Finally, finance ministry officials have been in talks with the International Monetary Fund (IMF) and the World Bank on crypto regulations. Both organizations have commended the nation for its shrewd handling of the crypto industry within its jurisdiction.