You are here: Home » Economy & Policy » News
Business Standard

India should take caution in introducing CBDC, says NCAER report

The report says that while a CBDC would have more penetration, the reach of Unified Payments Interface is widespread.

digital currency | Unified Payments Interface | UPI

BS Reporter 

Imaging: Ajay Mohanty
Imaging: Ajay Mohanty

India should take a cautious approach towards launching a central bank (CBDC) as it could be hazardous to institutions, retail-end users, and to the reputation of the central bank, says a paper by the National Council of Applied Economic Research (NCAER). Written by director general Poonam Gupta, it says that while a CBDC would have more penetration, the reach of is widespread. “We argue that many of these arguments for CBDCs have been advanced uncritically. Their proponents fail to acknowledge that some of these goals can be advanced at lower cost and at less risk through alternative means,” the report stated.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, May 04 2022. 02:06 IST