Digital currency: SBI’s Dinesh Kumar Khara on what the digital currency means for the economy, traditional banking | Rare Techy


“It’s not that it will eliminate physical banking. It will continue and digital banking is now part of our banking system. I think it will only develop more, that’s all,” he said.
Dinesh Kumar Khara, President,

The governor spoke about how CBDC or digital currency is now rapidly developing. How do you think the impact will be on the banking sector as well as consumers and businesses?

So far, they have introduced this CBDC on a pilot basis and the pilot has gone well. He was a very successful pilot. So, be inspired by this pilot. Perhaps it will also be measured in the retail sector.

Basically, it solves the need of extra funds in the economy and to that extent, perhaps the Indian economy has taken a very definite step and is taking a very strong step in that direction. It will definitely be useful because whatever was felt for the digital currency, it is listed through the CBDC which is also a regulated currency in the sense that the RBI is for the emerging economy. have a perfect stock of money. There needs to be a certain visibility of the public currency and at that level it is going very well.

How will this affect traditional banking? How will it permanently change the location of the bank?

Some part of digitization has already been seen in the banking system and therefore it will be parallel to everything that is happening. Even now, it is not that it will eliminate physical banking. It will continue and digital banking is now part of our banking system. I think it’s just going to evolve more, that’s all.

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On the inflation front, the governor has certainly given his lead as he sees things moving in a better direction. Does this also mean that rate hikes will start slowly, in your view? What will be the impact of both inflation and rate hikes in today’s commentary?

The governor is very encouraging of the steps taken to address the need for growth as well as to control inflation. Ultimately for a country like ours, it’s very good for the kind of challenge we’re going to face.

On deposits, the governor said that in the last two weeks, the growth of deposits has been strong. Can you give us some sort of an overview of how you’re seeing the deposits over the last couple of weeks? What kind of attraction can be seen?

What the governor mentioned is that since the festive season is already over, the money that was with the people will be returned to the system. Apart from that, government spending will also flow back into the banking system to ease the deposit situation.


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