India’s central bank signals no rush for digital currency implementation

The Reserve Bank of India prioritizes the long-term potential of central bank digital currencies but is holding off on a full rollout until its effects are better understood.

“We are in no hurry to roll it out immediately. Once we have some visibility of what the outcome or impact will be, we’ll roll it out. We don’t keep a specific timeline for that,” Shankar added.

In mid-August, Deputy Governor Michael Debabrata Patra highlighted the potential risks of CBDCs to banking stability. He warned that CBDCs could be misperceived as “safe havens” during financial crises, making bank deposits more vulnerable to withdrawals and potentially triggering “bank runs.” Patra also pointed out uncertainties in how CBDCs might impact bank deposits and deposit insurance systems.