“If we talk about UPI (United Payments Interface) vis-a-vis CBDC, the use of UPI is already prevalent and I don’t think CBDC serves any particular purpose,” the former deputy governor said in Kolkata on Friday. said in Kolkata on Friday.
“However it is good to have one (CBDC),” he said at an event at Bandhan Bank to mark the bank’s ninth anniversary.
However, the RBI is looking to make CBDC accessible to the wider retail segment by enabling non-bank payment system operators to offer CBDC wallets.
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On the other hand UPI is gaining currency day by day. In the month of July, UPI transactions grew by 35% year-on-year to Rs. 20.64 lakh crore has been reached. This is the third consecutive month of 20 lakh crore transactions.
Responding to a question regarding the internationalization of the rupee, Mundra opined that the currency cannot be internationalized until the rupee becomes fully convertible.
However, policy makers are not in favor of making the rupee fully convertible in terms of capital account to prevent a sudden and severe withdrawal of global investment from Indian markets.
During his speech on the future of Indian banking, Mundra said banks need to sit up and re-imagine their business models as fintech companies with big digital capabilities are flooding the market.
However, collaboration between the two could be a win-win proposition, he said.
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