Budget 2022: Digital rupee to be issued by RBI in 2022-23

Finance Minister Nirmala Sitharaman on Tuesday said that the Reserve Bank of India (RBI) will issue Digital rupee in the upcoming year 2022-23. The finance minister said the central bank would issue a digital rupee using blockchain and other technology. The RBI will implement it around 2022-23.“Digital currency will also lead to a more efficient and cheaper currency management system. It is therefore proposed to introduce a digital rupee using blockchain and other technologies, to be issued by the Reserve Bank of India, starting 2022-23,” the finance minister said.RBI had expressed its desire to introduce a digital currency last year. At the time, the government was planning to ban the use of cryptocurrencies in the country. However, things were stalled after a committee was formed to hold talks with major stakeholders and give recommendations on the future of cryptocurrencies in the country.

Finance Minister also announced that 75 digital banking units will be set up in 75 districts. "In recent years, digital banking, digital payments, and fintech innovations have grown at a rapid pace in the country. The government is continuously encouraging to ensure that the benefits of digital banking reach every nook and corner in a consumer-friendly manner." "Taking forward this agenda, and to mark 75 years of Independence, it's proposed to set up 75 digital banking units in 75 districts of the country by scheduled commercial banks. The financial support for digital payment ecosystem - announced in the previous budget - will continue in 2022-23 as well," she said. Also, in another important budget announcement, "any income from transfer of any virtual digital asset shall be taxed at the rate of 30 per cent". "No deduction in respect of any expenditure or allowance shall be allowed while computing such income, except cost of acquisition," Ms Sitharaman said.