The use of CBDC is gradually increasing, but it still needs to be adopted on a large scale. Punjab National Bank’s (PNB) 3.74 lakh CBDC users and 24.1 lakh transactions are a good sign in this direction. At the same time, the country’s largest bank, SBI, is providing e-rupee facility to 8 lakh customers and more than 36,000 merchants, with an average transaction of ₹ 6 crore every day.
What is being done to promote CBDC?
Entry of fintech companies: RBI has allowed MobiKwik and Cred to launch e-rupee wallet in collaboration with YES Bank.
Use in government schemes: SBI has started transferring money to beneficiaries through CBDC under the ‘Subhadra Yojana’ of the Odisha government.
New innovation needed: RBI Deputy Governor T. Rabi Sankar has asked banks to find new uses for CBDC, such as its use in micro-loan collection systems.
Can CBDC replace UPI?
Fintech experts believe that it can be better than UPI in P2P transactions (such as parents sending money to their children). But the role of risk-taking fintech companies will be important for its widespread adoption.
Way forward:
RBI aims to have 10 lakh CBDC transactions daily, but this figure is still far behind. Banks and fintech companies will have to find new uses, make digital payments easier and explain its benefits to customers.