RBI wants the government to broaden the definition of “bank notes” to include digital currency.

  • The union government today informed the Parliament that it has received a proposal from the Reserve Bank of India last month for an amendment to the RBI Act, 1934 to enhance the scope of the definition of ‘bank note’ to include currency in digital form.
  • The minister further stated that the introduction of a digital currency has the potential to provide significant benefits, such as reduced dependency on cash, higher seigniorage due to lower transaction costs, reduced settlement risk.
  • Through the cryptocurrency and Regulation of Official Digital Currency Bill, 2021, India is also looking to make a framework for the official digital currency that will be issued by the Reserve Bank of India.

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