Reserve Bank of India which is the central bank of India. The country's central bank has recently taken a decision on cross-border payments and is looking to expand this platform. India's central bank in particular has decided to expand its cross-border payment platform to enable faster settlement of transactions that are instant. If they implement it, the country will add new trading partners in Asia and the Middle East region.
India is trying to prove itself economically strong especially in Asia where China is a competitor. The country has already entered into an agreement with neighboring Sri Lanka, Bhutan and Nepal to facilitate faster settlement of these transactions and improve customer service. The country is even planning to include these neighboring countries as well as the UAE in its cross-border settlement programme. The country's central bank has long introduced central bank digital currencies, or CBDCs, and is exploring them as the primary settlement mechanism within cross-border payment solutions.
The Reserve Bank of India, which introduced the central bank digital currency, or CBDC, currently operates as a bank-to-bank solution. It is a central bank digital currency but not a widely accepted consumer-facing central bank digital currency. However, the bank may expand CBDC to include most retail customers in the future but has not provided a timeframe for a mass retail CBDC. As the country is a member of BRICS and currently the organization along with other member countries such as China and Russia, India continues to be one of the biggest proponents of CBDCs globally. Although India began exploring the possibility of settling CBDC as a digital currency four years ago, the central bank began testing CBDC development two years ago through the country's central bank pilot program. Currently, the country's central bank is working on offline solutions to encourage its users in rural areas as well.
Even the country has collected many subscribers to launch the pilot program around August this year and they are claiming that the number of these subscribers is around 5 million through which this pilot program is expected to be implemented. They also revealed plans to make sovereign CBDC schemes more interoperable by adopting a plug-and-play system from the country's central bank so that transactions can be completed more smoothly and efficiently in the future. However, their systems, as well as the country's central bank's push to develop a digital currency, have drawn widespread criticism from privacy advocates, human rights activists and freedom-minded individuals. They do have reasons for their criticism, however, and say that centrally controlled digital ledgers pose dangers and potential for abuse by governments because of the program and any resulting costs that far outweigh the efficiency benefits.
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