RBI takes cautious approach to retail digital currency rollout

RBI Deputy Governor T Rabi Sankar said the central bank is in no rush to launch retail CBDCs, stressing cross-border use cases and the need for global coordination, echoing recent comments by Finance Minister Sitharaman

The Reserve Bank of India (RBI) is adopting a measured strategy towards the full-scale rollout of its Central Bank Digital Currency (CBDC), especially for retail use. Deputy Governor T Rabi Sankar said the central bank is observing developments in other countries before proceeding further with its own plans.

“We’re in no rush,” Sankar said during the Global Fintech Fest, adding that a coordinated global effort would be more effective. He noted that the most impactful use case for CBDCs lies in cross-border transactions, although the possibility of a domestic retail launch remains open.

His remarks follow recent comments by Finance Minister Nirmala Sitharaman, who stressed the need for countries to begin preparing for the integration of stablecoins and digital currencies in their financial systems.

Biometric authentication introduced for UPI transactions

At the same event, the National Payments Corporation of India (NPCI) unveiled a new feature allowing biometric authentication for UPI payments. This feature, presented by Financial Services Secretary M. Nagaraju, enables users to authenticate payments using fingerprint or facial recognition instead of a PIN.

The NPCI noted that the feature enhances both security and ease of use, especially for senior citizens and new users. “Each transaction undergoes independent verification by issuing banks through cryptographic methods,” it said in a statement, ensuring high levels of security while maintaining a seamless user experience.

The biometric option will be available to users who opt in through their banking apps.