UPSC Prelims 2024 · GS Paper 1 · Q43

Economy

Medium · Digital Rupee (CBDC)

Consider the following statements about the Digital Rupee (e₹), India's Central Bank Digital Currency:

1. It is issued by the Reserve Bank of India and represents a direct liability on the RBI's balance sheet, just like physical currency.

2. It is freely convertible against physical cash and against bank deposits, at par.

3. The value of the Digital Rupee held by a user is automatically indexed to inflation, unlike physical currency.

Which of the statements given above is/are correct?