| | JULY 20238The Reserve Bank is aiming to increase daily CBDC transactions to 10 lakh from up to 10,000 by the end of the year, according to a report in on July 12. The central bank intends to accomplish this by utilising UPI QR codes.The RBI had planned to test the e-rupee for retail transactions on December 1, 2022. As of June, approximately 13 lakh users had downloaded the CBDC wallet, and approximately 3 lakh merchants accepted CBDC payments.The RBI has tasked banks with promoting the CBDC by interoperating UPI QR codes for e-rupee payments. E-rupee payments provide both the anonymity of cash and the convenience of digital transactions.Transactions have yet to pick up, owing to the small number of merchants who accept CBDC.Interoperability would allow any merchant who accepts UPI payments to also accept CBDC, according to RBI deputy governor T Rabi Sankar. This will alleviate concerns about the number of merchants on board, he said at a conference hosted by the Indian Banks' Association.According to data, 13 banks authorised to deal with CBDC have achieved partial interoperability, which means that QR codes can be scanned and linked to CBDC wallets if they are available.According to Sankar, the 10 lakh CBDC payments target was not too lofty given the 31 crore UPI transactions. Simultaneously, he added that it was large enough to get a sense of the implications. With $21 trillion in assets, 85 sovereign wealth funds and 57 central banks claim that India has surpassed China as the most appealing emerging market for investment. According to an Invesco study, perceptions of India are improving due to increased economic and political stability, favourable demographics, regulatory initiatives, and a welcoming environment for sovereign investors.The 142 chief investment officers, asset class heads, senior portfolio strategists, and representatives from 85 sovereign wealth funds and 57 central banks contributed to the 'Invesco Global Sovereign Asset Management Study' report.In the face of persistently high inflation and real interest rates, investors are rebalancing their portfolios. According to the report, sovereign wealth funds favour fixed income and private debt, while emerging markets (EMs) with strong demographics, stable governments, and proactive regulation, particularly India, have become popular places to invest."Among the Emerging Markets, India has piqued sovereign investors' interest, overtaking China," the report stated.India is among the nations gaining from increased foreign corporate investment through "friend-shoring" and "near-shoring," which targets both domestic and international demand. Other nations benefiting from this trend include Mexico and Brazil. This was viewed as supporting currencies, domestic assets, including debt, and current account deficits.On the scale of attractive EM markets for increasing exposure, India and South Korea continue to be the most attractive destinations, it said. RBI TO PROMOTE USAGE OF DIGITAL RUPEEINDIA CLAIMS TOP SPOT FOR MOST PROFITABLE MARKET FOR INVESTMENTIN FOCUSIN FOCUS
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