Dikhyaa Mohanty 
The apex bank of India Reserve Bank of India (RBI) stated that it will soon commence the pilot launch of the digital version of the Indian currency Rupee for specific use cases. It has also released a concept note on Central Bank Digital Currency (CBDC) that aims to create awareness about such currencies in general and the planned features of the Digital Rupee in particular.
According to the official reports, the RBI concept note states that the central bank digital currency is a sovereign currency issued by the central banks in alignment with the monetary policy and it will appear as a liability on the central bank’s balance sheet.
RBI in a statement said, “The concept note also discusses key considerations such as technology and design choices, possible uses of the digital rupee, and issuance mechanisms, among others.”
According to the concept note, digital currency must be accepted as a medium of payment, legal tender and a safe store of value by all citizens, enterprises and government agencies. The digital currency will be freely convertible against commercial bank money and cash. It will be a fungible legal tender for which holders need not have a bank account.
