E-rupee a gamechanger? Central bank digital currencies have some little-known downsides. RBI needs to assess them

Clipped from: https://timesofindia.indiatimes.com/blogs/toi-edit-page/e-rupee-a-gamechanger-central-bank-digital-currencies-have-some-little-known-downsides-rbi-needs-to-assess-them/

When you hold a hundred rupee note in your hand, you will see a pledge by the RBI Governor: “I promise to pay the bearer the sum of one hundred rupees.” What does this pledge mean when you are actually in physical possession of the currency note?

Like most people, I too never bothered to probe this until I became governor and it became part of my job to understand the import of a promise I was making. I was told that this meant the governor is guaranteeing that the note is legal tender, and cannot be refused as a means of payment. A conscientious governor will also see this as a reminder of his duty to preserve the purchasing power of the rupee by keeping inflation low and steady.

Read full opinion on TOI+


Views expressed above are the author’s own.


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