Digital Rupee Can Prove To Be Game Changer For Cross-Border Payments: RBI Governor Shaktikanta Das

Das noted that the RBI's CBDC initiatives were gradually expanding to encompass more banks, cities, users, and use cases.

In a recent keynote address at the G20 TechSprint Finale, Reserve Bank of India (RBI) Governor Shaktikanta Das drew attention to the challenges surrounding cross-border payments, emphasising the issues of high costs and slow transaction speeds. Das indicated that the central bank digital currency (CBDC) — dubbed Digital Rupee (e₹) — instant-settlement feature could offer a viable solution to these challenges. Despite advancements in cross-border payments, the governor underscored persistent hurdles such as elevated expenses, sluggish processing times, limited accessibility, and insufficient transparency. He emphasised that the development of faster, more affordable, transparent, and inclusive cross-border payment services could provide widespread benefits to individuals and economies globally, supporting economic growth, international trade, and financial inclusion.

The G20 TechSprint event, organised by RBI and the Bank for International Settlements (BIS) under India's G20 presidency, focused on "Technology solutions for cross-border payments."

Governor Das also discussed the RBI's ongoing CBDC initiatives, highlighting the launch of two CBDC pilot projects for both retail (e₹-R) and wholesale (e₹-W) segments the previous year. He noted that these initiatives were gradually expanding to encompass more banks, cities, users, and use cases. Das expressed confidence in the potential of CBDCs, especially their instant-settlement feature, to enhance the cost-effectiveness, speed, and security of cross-border payments.

Furthermore, Das acknowledged the transformative impact of the Unified Payments Interface (UPI) on India's digital payments ecosystem, referring to it as a game-changer. UPI has played a crucial role in promoting financial inclusion by integrating millions of previously unbanked individuals into the formal financial system. With over 10 billion transactions conducted monthly, UPI has become the cornerstone of digital payments in India and has spurred innovation within the fintech sector. Over 70 mobile applications and more than 50 million merchants currently accept UPI payments.

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