Consider the following statements in respect of the digital rupee:
1. It is a sovereign currency issued by the Reserve Bank of India (RBI) in alignment with its monetary policy.
2. It appears as a liability on the RBI’s balance sheet.
3. It is insured against inflation by its very design.
4. It is freely convertible against commercial bank money and cash.
Which of the statements given above are correct?
Answer:
(d)
CA
Answer: (d) • Statement 1: It is a sovereign currency issued by the Reserve Bank of India (RBI) in alignment with its monetary policy. o This statement is correct. The digital rupee is issued by the RBI as part of its monetary policy framework. • Statement 2: It appears as a liability on the RBI’s balance sheet. o This statement is correct. The digital rupee, like physical currency issued by the central bank, appears as a liability on the RBI’s balance sheet. • Statement 3: It is insured against inflation by its very design. o This statement is incorrect. The digital rupee, like physical currency, is not inherently insured against inflation. Inflation depends on broader economic factors and monetary policy, not on the design of the currency itself. • Statement 4: It is freely convertible against commercial bank money and cash. o This statement is correct. The digital rupee is intended to be freely convertible against other forms of money, including commercial bank money and physical cash. Therefore, the correct statements are 1, 2, and 4. https://www.civilsdaily.com/news/cbdc-pilot-programmes-for-cps-cds-likely-rbi/