Literature Review On Central Bank Digital Currency, E-Rupee Its Financial Inclusion

Abstract

The rapid evolution of digital technologies has catalyzed the development of Central Bank Digital Currencies, with India's e-Rupee at the forefront of this innovation. This article delves into the multifaceted implications of the e-Rupee, a digital currency initiative spearheaded by the Reserve Bank of India, designed to augment financial inclusion and optimize the efficiency of the monetary system. The e-Rupee signifies a major shift from traditional cash reliance to a digital economy, aiming to bridge the gap for the unbanked and underbanked populace, reduce the costs associated with cash transactions, and enhance transactional security. Amidst the dynamic interface of technology and finance, the article examines the potential of the e-Rupee to revamp financial transactions, underscores the necessity for stringent regulatory frameworks to mitigate cyber risks, protect privacy, and maintain economic stability, and emphasizes the critical role of technological infrastructure in the successful deployment of CBDC. The analysis culminates with a holistic overview of the e-Rupee, reflecting on its capacity to drive inclusive economic growth and its anticipated position within the grander scheme of global financial transactions. The findings suggest that while the journey ahead will involve navigating through various challenges, the e-Rupee stands as a beacon of opportunity for creating a more inclusive, efficient, and integrated financial future for India.