“If we talk about CBDC in relation to UPI (United Payments Interface), the use of UPI is already common and I don’t see CBDC serving any special purpose,” Mundra said here on Friday.
“It’s good to have a (CBDC),” he said at a program to commemorate Bandhan BankNinth anniversary.
The RBI is looking to make CBDCs accessible to a wider retail segment by allowing non-banking payment system operators to offer CBDC wallets even as UPI is gaining traction day by day.
UPI transactions reached Rs 20.64 lakh crore last month, up 35% compared to July 2023. It was the third consecutive month with over Rs 20 lakh crore transactions.
Responding to a question related to the internationalisation of the rupee, Mundra opined that it cannot happen until the rupee becomes fully convertible. However, policymakers are not in favour of making the rupee fully convertible in terms of capital account to avoid a sudden and severe withdrawal of global investment from Indian markets. During his speech on the future of Indian banking, Mundra said that banks need to reflect and reimagine their business models as fintech companies Companies with greater digital capabilities are flooding the market. However, a collaboration between the two can be a win-win proposition, he said.
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