RBI

Reserve Bank of India (RBI) is planning to extend wholesale Central Bank Digital Currency (CBDC) as a token for interbank borrowing or call money market, RBI sources said on Tuesday. The pilot in the wholesale segment, known as the Digital Rupee -Wholesale (e₹-W), was launched on November 1, 2022, with the use case being limited to the settlement of secondary market transactions in government securities.

The withdrawal of Rs 2,000 notes from circulation has been a ruckus for businessmen as they rush to banks for exchange. Despite a span of four months given by the Reserve Bank of India, the flow of money exchange continues. Notably, a considerable number of people are disposing of Rs. 2,000 notes. Furthermore, within a week, the State Bank of deposits and exchanged currency worth Rs 3,000 crore.

The Delhi court, which was hearing a PIL challenging the RBI's decision to withdraw the banknote from circulation, posted the matter for hearing on May 29. The withdrawal of Rs 2000 denomination banknotes from circulation was a “currency management exercise”, said RBI. A bench headed by Chief Justice Satish Chandra Sharma is reviewing the matter, and asked the RBI to defer the decision of the withdrawal of Rs 2,000 notes.

To maintain the inflation in India, the Reserve Bank of India is likely to go for another hike in rates. Notably, the Central Bank will announce its bi-monthly monetary policy on April 6. If experts are to be believed, the RBI will hike its repo rate by 25 bps, to control inflation. In February, India’s retail inflation stood at 6.44%, while in January, it was at 6.52%.

The Reserve Bank of India (RBI) is soon to launch Rs 100 coin with the image of the former CM of Andhra Pradesh and founder of the TDP N.T. Rama Rao. The decision was taken by the Central Government, to honour the services of NTR. Furthermore, the coin composed of 50% silver, 40% copper, 5% nickel and 5%zinc, will be available in the market after two months, at Rs 4,160.