Trade, import and export for MSMEs: The Central Bank Digital Currency (CBDC) or digital rupee launched for the retail segment comprising customers and merchants in December last year is pegged to boost cross-border trade. According to Shaktikanta Das, Governor, Reserve Bank of India, rupee settlement of cross-border trade and CBDC can also be areas of greater cooperation in the future. In fact, the government and RBI are in discussion with South Asian countries to have cross-border trade in rupee, Das had said at an IMF conference in January this year.
Retail CBDC can enable access to safe money for payment and settlement since it would be the direct liability of the central bank and that there won’t be a need for interbank settlement.
Also read: Retail digital rupee: Merchants to receive payments via their QR codes, says RBI
According to Shekhar Bhandari, President, Global Transaction Banking, Kotak Mahindra Bank, digital rupee will have to liaison and collaborate with other governments to have similar structures in place (outside India).
“Once you have a similar programme happening in other countries, you will generally see e-rupee become a reality. The settlement will become instant without any delays which happen currently,” Bhandari said talking to FE Aspire. He discussed more on MSME exports and solutions offered by Kotak Mahindra Bank to MSMEs.