Reported by: banking|Updated: June 27, 2016
The Reserve Bank of India is planning to constitute a committee on the adoption of blockchain technology to reduce the use of paper currency in the country, according to RBI deputy governor HR Khan. He said blockchain is one thing that has come out of Bitcoin which provides a lot of flexibility in terms of financial transactions. It need to study how the Blockchain technology can be used in financial transactions where the entire data systems move to some more levels, he said. By reducing the usage of paper currency, RBI will be able to reduce the costs associated with printing, transport and maintenance of the currency notes in circulation. It will be helpful to effectively combat counterfeiting of Indian currency notes. To reduce its expenses and to ensure better accountability and transparency, RBI has been actively promoting the transition to a cashless society by urging people to make use of electronic payments systems like credit and debit cards.