Developments likely in RBI digital currency in 3-6 months

Reserve Bank of India may come up with a proof-ofconcept on the proposed central bank digital currency this month, followed by a pilot, even as the legal changes needed for creation of such a currency are already in advanced stages, Anuj Ranjan, general manager, and head of the fintech department said.

"In the next three to six months, there could be some very positive outcome on this, and we could be sure as to what architecture and design choices the Reserve Bank of India is choosing for CBDC (central bank digital currency) to be implemented," he said.

"But, we are in quite an advanced stage." He added that the legal amendments were crucial, and RBI was engaged with the government on that, so that all legal requirements were in place before formalising its central bank digital currency strategy.

Ranjan said that the motivation for such a fiat digital currency backed by the RBI was that through such a currency there may be a shift to digital transactions even for small values.

He said that the other motivations for a central bank digital currency included seigniorage income, and costs for transportation and storage will

be reduced.

Interoperable regulatory sandbox to be final soon

NEW DELHI: The Reserve Bank of India and other sector regulators are working together under the aegis of the subcommittee of the Financial Stability and Development Council to come up with an interoperable regulatory sandbox, to cater to innovations that lie across the domain of two or more regulators, Anuj Ranjan, general manager, and head of the fintech department said.

"In a month's time, we are almost on the verge of finalisation of an interoperable (regulatory) sandbox which we call IORS where we all will be there," he said.

"There will be a standing group." Whenever there is an innovation or product that cuts across two regulators, one may be identified as a principal regulator, with support from the

other concerned regulator.