Union Budget proposes introduction of Central Bank Digital Currency

Submitted by dhananjay on Wed, 02/02/2022 - 14:53

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New Delhi: The Minister for Finance & Corporate Affairs, Nirmala Sitharaman on Tuesday announced the introduction of Digital Rupee to be issued by the Reserve Bank of India starting 2022-23. Presenting the Union Budget 2022-23 in the Parliament, the finance minister said that the Central Bank Digital Currency (CBDC) will give a big boost to digital economy. Digital currency will also lead to a more efficient and cheaper currency management system, the Minister stated. The Digital Currency will use block chain and other technologies.

The Finance Bill 2022 has proposed to amend sections 2 and 22 of the Reserve Bank of India Act, 1934 in-order to facilitate 'Central Bank Digital Currency'. 

In the Reserve Bank of India Act, 1934, 
"(a) in section 2, after clause (aiii), the following clause shall be inserted, namely:
(aiv) "bank note" means a bank note issued by the Bank, whether in physical or digital form, under section 22; 
(b) after section 22, the following section shall be inserted, namely:
"22A. Nothing contained in sections 24, 25, 27, 28 and 39 shall apply to the bank notes issued in digital form by the Bank"".