Indians Using Central Bank Digital Currency Cross 70 Lakh, RBI In
Mumbai: Over 70 lakh Indians currently use the central bank digital currency (CBDC) as part of its pilot project, and the Reserve Bank of India (RBI) is in “no hurry” for a full rollout of the virtual currency, a senior official said on Tuesday.
“The number of people using CBDC is now 70 lakh. We are in no hurry for a full rollout of CBDC,” Sankar told reporters on the sidelines of the annual Global Fintech Fest in Mumbai. He explained that the RBI’s focus is on increasing the use cases for the CBDC and highlighted a surge in the number of programmable CBDC applications.
Sankar noted that the real advantage of CBDC lies in cross-border usage. However, to fully realize these benefits, other countries also need to make progress with their own CBDC projects.
In an earlier speech, Sankar mentioned that work is underway on a Digital Payments Intelligence Platform (DPIP) that will analyze and assign risk scores to transactions in real time.
To control instances of fraud, the RBI has introduced initiatives like ‘MuleHunter.ai’, which is currently used by 20 banks.
Speaking about artificial intelligence (AI), Sankar addressed the challenges posed by this widely used technology. He pointed out the “Black Box” problem of AI models, referring to their lack of explainability, which makes these models non-transparent. This opacity complicates the work of regulators and auditors, making it difficult to understand how decisions are made and undermining accountability.
Regulatory actions or denial of services typically require clear communication of reasons. The absence of explainability in AI models may thus limit their use.
Sankar also highlighted systemic risks associated with AI systems, such as “herding behaviour” — when AI-driven trading models become widely used, potentially amplifying market volatility. He warned that over-reliance on automation might lead to loss of oversight or delayed intervention when issues arise.
Moreover, he emphasized ethical concerns, including the use of behavioural data for manipulative cross-selling or risk profiling.
“It is necessary to balance innovation while safeguarding systemic stability,” the RBI Deputy Governor said. He reiterated that the RBI has always promoted innovation within robust safeguards.
Through calibrated guidance, supervisory oversight, and structured engagement with industry stakeholders, the RBI aims to create an ecosystem where financial innovation can flourish without compromising systemic stability.
“As AI reshapes the financial landscape, this approach remains unchanged — progress and prudence must go hand in hand,” Sankar concluded.
*Disclaimer: This story is from a syndicated feed. Nothing has changed except the headline.*
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