3min chapter

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CBDC - Can RBI make a big leap into the future with digital currencies?

Capitalmind Podcast

CHAPTER

Is There a Systemic Problem in the Banking System?

When a bank lends you a hundred rupees, you deposit that hundred rupees in the bank. But if you take this out and put it into arba, it's leakage from the banking system. That leakage can impact monitary policy, both in a good way and in a bad way. I think it has constraint. You'll end up with hitting a wall at some point. We have seen a lot of cash usage in the past. Cibidic may enhance that usage. So we'll just have to figure out hou how to make these things happen.

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