Implications of Central Bank Digital Currency in India: A Critical Analysis


  • Neha K. Chawla Rajiv Gandhi National University of Law, Punjab



CBDC, Cryptocurrency, UPI, Digital rupee, electronic payment, RBI, Monetary policy, Demonetisation


Central Bank Digital Currency (CBDC) is creating a lot of waves these days in the Indian economy due to its digital character. It is a sovereign currency issued by the central bank and a fungible legal tender for which users need not have a bank account. It is a much faster real-time tool to not only do a simple exchange of funds but for development of India’s monetary policy. In other words, CBDC is the physical bank note which is now put on a blockchain. Many questions arise about the legal and policy implications of CBDC. Even people are muddled as to what is the need of introducing a digital currency when cryptocurrency and other e-payment platforms are existent. This paper shall try and highlight the effect on the economy by introduction of digital currency and what are the major privacy, security, technological and monetary policy concerns surrounding it. It shall also draw comparisons from other jurisdictions where a digital currency has already been bought into force.




How to Cite

Chawla, N. K. . (2023). Implications of Central Bank Digital Currency in India: A Critical Analysis. DME Journal of Law, 4(02), 22–28.



Research Article