“The RBI is working on a phased implementation of a Central Bank Digital Currency (CBDC) in both wholesale and retail segments. With the announcement of CBDC in the Union budget, the necessary amendment to the relevant section of the RBI Act 1934 had been made enabling RBI to conduct pilot and subsequent issuance of CBDC,” said Ajay Kumar Choudhary, Executive Director, RBI on Wednesday. He was addressing the ‘PICUP Fintech Conference & Awards’, organized by FICCI, jointly with IBA.
“In the next five years, the Indian fintech sector is expected to grow with a cumulative annual growth rate of around 22%. Today, the world is looking up to India, as we continue to innovate and lead the way seamlessly imbibing the new age technology without compromising on the safety and security aspects. Fintech growth in India has been huge with a very high adoption rate as compared with other jurisdictions,” Choudhary added.
“Sustainability is the most critical aspect in the fintech sector. RBI has constituted a committee to both examine and suggest measures to address the risks and challenges associated with the fintech eco-system while continuing to foster innovation,” he stated.
The sector will continue to have responsible innovations which will transform the financial landscape of the country. The growth does not have to be only swift but sustainable growth and inclusive of all. It is imperative to implement responsible innovations which serve the underprivileged, corporate governance; make technological advancements that are scalable and interoperable; giving importance to policy on data privacy, consumer protection, cyber security and prevention of financial crime, he asserted.