PM Modi Promotes RBI's Digital Currency at Odisha Scheme Launch

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Bhubavnnesywar: On Tuesday, Prime Minister Narendra Modi encouraged the use of the Reserve Bank of India's (RBI) digital currency while launching the Odisha government's flagship women-focused Subhadra Yojana in Bhubaneswar. The scheme aims to support women across the state, and Modi thanked the women of Odisha for their active participation. 

 

During the event, the Prime Minister announced that the Subhadra Yojana has been linked to the RBI's digital currency pilot project. This connection will allow women beneficiaries to use the digital currency for transactions, making it easier for them to access and manage financial aid. 

The scheme promises to provide financial assistance of ₹50,000 to over 1 crore women in Odisha. The funds will be transferred directly to the bank accounts of the beneficiaries, ensuring timely and efficient support. 

In 2022, the RBI launched its Central Bank Digital Currency (CBDC) pilot program, which has two main components: the retail CBDC (CBDC-R) and the wholesale CBDC (CBDC-W). CBDC-W is designed for institutional use in financial markets, while CBDC-R focuses on retail consumers, enabling them to make person-to-person (P2P) and person-to-merchant (P2M) transactions. 

Regarding direct benefit transfers (DBT), the central government has made significant progress, completing over 10 billion transactions worth ₹6.9 trillion during 2023-24. These transfers ensure that financial aid reaches people quickly and efficiently. 

According to the RBI’s latest currency and finance report, the number of customers using the retail CBDC pilot grew from 1.3 million in 2023 to 5 million by June 2024. Similarly, the number of merchants accepting CBDC increased from 0.3 million to 0.42 million. 

The RBI has also stated that it is working on expanding the use of CBDC-R. By allowing non-bank payment system operators to offer CBDC wallets, it aims to make digital currency more accessible to a wider audience, providing people with more options for digital transactions. 

This initiative highlights the government's commitment to promoting digital financial inclusion and empowering women through technology.