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The promise of Digital Rupee

April 26, 2022 5-MINUTE READ

In brief

Digital Rupee is different from a digital representation of money

Digital rupee, with its unique characteristics of identifiability, programmability and a distributed ledger can unleash a new set of economic possibilities

CBDC to improve resilience, prevent fraud, improve welfare distribution

The adoption of a Digital Rupee would support greater diversification of India’s payment system by offering alternative payment rails.

While the current system relies on post-facto checks to prevent fraud, CBDC could address this proactively with embedded programmability and regulated traceability.

 

A Digital Rupee held by non-residents and used for cross-border financial transactions will enable new retail payment possibilities and business models.

CBDC could further strengthen the welfare distribution and make it more robust by plugging leakages, such as preventing welfare money from being diverted to unrelated bank accounts.

 

17%

India’s cash propensity, which is higher than those of the Nordic countries, the UK and Australia. 1

38 bn

The number of UPI transactions conducted in the year 2021. 2

$50 bn

The approximate amount of money lost by banks to fraud between 2018 and 2020, as per RBI data. 3

Taking a dip in the ocean is not equivalent to taking a dip in the entire ocean.

Pranav Arora

MANAGING DIRECTOR FINANCIAL SERVICES AND LEAD – APPLIED INTELLIGENCE, ACCENTURE IN INDIA


Ousmene Mandeng

SENIOR ADVISOR – BLOCKCHAIN AND MULTIPARTY SYSTEMS, ACCENTURE


Kiran Dhanwada

CLIENT ACCOUNT LEADERSHIP, SENIOR MANAGER, FINANCIAL SERVICES, ACCENTURE IN INDIA


Gaurav Shobhane

BUSINESS STRATEGY MANAGER, FINANCIAL SERVICES, ACCENTURE IN INDIA

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