With reference to 'Central Bank Digital Currency' (CBDC) in India, consider the following statements: 1. It is a legal tender issued by the Reserve Bank of India in a digital form. 2. It earns interest just like the deposits kept in a bank account. 3. It is based on blockchain technology. How many of the statements given above are correct?
A
Only one
B
Only two
Correct Answer
C
All three
D
None
Explanation
CBDC (e-Rupee) is a digital form of legal tender issued by the RBI and utilizes blockchain/distributed ledger technology. However, unlike bank deposits, it does not earn interest, as it is designed to be the digital equivalent of physical cash.
Money and BankingDigital CurrencyCBDCReserve Bank of IndiaLegal TenderBlockchaine-Rupee