A SURVIVAL & DIGITALIZATION OF CBDC IN INDIA: A CRITICAL EVALUATION

This paper provides a complete overview to readers about the topic of Central Bank Digital Currencies
(CBDC). And gives idea about that introduction of CBDC would affect the country economy, banking
sector, financial stability, Privacy of citizens or users and monetary policy in a developing nation India. In
this paper, I have mentioned about CBDC Indian centralized E-rupee and right here I have complete
analysed examine approximately that Indian E-Rupee whole operating characteristics and features, studied
approximately its benefit and risk.
Following Points giving idea about and the reasons why a Central Bank (CB) may want to introduce a
CBDC. The vast majority of countries central banks are exploring CBDC (Digital Currency) Nowadays
between countries and people debate is being Popularise about CBDC benefits and risk.
In the chance of Many Central banks issuing digital Currency (CBDC) straight away raises the query of
how this new form of money ought to co-exist and engage with existing sorts of money. Will it be capable
of compete with already existing online payments Tool? According to this research paper government has
launched Digital currency because government intends to reduce the extent use of Cryptocurrency in an
economy. This is the completely illusion that CBDC is a Game changer in Payment sector. When the country
fails to outlaw crypto currency, questioned if we can't defeat them, should we join them? In this paper it is determined that the economy will experience inflation as a result of the introduction of the CBDC using the
Fisher Quantity Theory of Money. Further, more use of CBDC may affect financial stability through
influencing monetary policy. Additionally, the government is restricting the cash transfer, holding of cash
Limited UPI payments in order to strengthen the CBDC and safeguard the Monopoly of central bank
currency. Digital e-rupee is having less pros and more cons. The introduction of the CBDC may give the
impression that the Government does not only want to monopolize centralized currency is now trying to
monopolize medium of exchange of centralised currency also. With Despite ongoing research and sporadic
pilots, Central Banks have been reluctant to make a CBDC available to the general public. Would it be
advantageous?