According to Chaudhary, the RBI is now working on a phased implementation approach for CBDC, as well as exploring use cases that might be adopted with little or no impact.

On Tuesday, Minister of State for Finance Pankaj Chaudhary told the Rajya Sabha that the government had no plans to adopt cryptocurrencies.

In a written response, he stated that cryptocurrencies are currently uncontrolled in India.

“The Reserve Bank of India does not have a cryptocurrency. Traditional paper currency is legal tender, and RBI issues it in accordance with the RBI Act of 1994. Central Bank Digital Cash (CBDC) is a digital version of traditional paper currency “he stated The RBI is now working on a phased deployment approach for CBDC, as well as analysing use cases. could be implemented with little or no disruption, he said in another reply.

He stated that the implementation of CBDC has the potential to deliver considerable benefits such as decreased reliance on cash, increased seigniorage due to lower transaction costs, and so on. He added that the printing of notes has decreased over time, with notes worth Rs 4,378 crore printed in 2019-20 and Rs 4,012 crore printed in 2020-21.

In response to another question, he stated that the country’s financial health has numerous components. “One measure of a country’s financial health is a stable stock market with well-functioning and sophisticated market infrastructure. Stock markets are a good indicator of long-term economic growth because stock prices represent the market’s expectations for future corporate earnings/profitability and thus the underlying confidence in the economy,” he said. However, he claims that in the near run, economic and geopolitical developments influence stock prices.

Exchanges charge brokers transaction fees, which can be passed on to clients, he added, noting that the transaction fee is stated in the contract note supplied to the client by the broker. The taxes imposed on the sale and purchase of stocks, as well as the fees imposed by exchanges, are detailed in the contract note sent by the broker to clients at the end of each trading day, he said.

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