RBI: e-Rupee Can’t Dethrone Cash-Yet!

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RBI: e-Rupee Can’t Dethrone Cash-Yet!

In a world where digital dreams meet the cold, hard reality of cash, the RBI’s governor delivered a rather gloomy reminder that the e-Rupee, India’s Central Bank Digital Currency (CBDC), is still a fledgling contender in a race dominated by the venerable, crumpled notes of yore. Amidst the global fervor for sovereign digital assets, Governor Malhotra offered a sobering reality check, akin to a dachshund being told it’s not a greyhound.

The briefing, a masterclass in bureaucratic diplomacy, saw the Governor and Finance Minister Sitharaman exchange pleasantries while subtly assuring the public that the fiscal ship remains afloat, albeit with a few leaks that might be addressed in the next decade.

While the government’s digital ambitions sizzle with the fervor of a thousand startups, the RBI’s cautious approach mirrors a Victorian matron eyeing a scandalous new fad-practical, prudent, and utterly unexciting. The CBDC, it seems, is still in the “let’s test this in a lab” phase, while cash remains the unchallenged monarch of the monetary realm.

Monetary Policy and the CBDC Dilemma

One might have expected the CBDC to boldly march into the future, but instead, it tiptoes with the caution of a man in a room full of landmines. “CBDC is not a substitute for cash at the moment,” the Governor declared, a statement so thrilling it could lull a toddler to sleep. The RBI, it appears, is less interested in revolution and more in ensuring the digital infrastructure doesn’t collapse under the weight of its own ambition.

Meanwhile, the MPC, that venerable body of economists, remains as data-dependent as a child with a broken calculator, eagerly awaiting the next CPI report to adjust its monetary framework. A shift in methodology? A potential pivot? The suspense is palpable.

Fiscal Stability: Gold Volatility and Liquidity

Finance Minister Sitharaman, ever the optimist, blamed surging gold prices on “aggressive purchasing by global central banks,” a euphemism for “everyone else is buying gold, and we’re left holding the bag.” Gold, that ancient symbol of stability, has risen to new heights, while Bitcoin, the digital equivalent of a poorly timed joke, tumbled like a disgraced politician.

Bitcoin’s recent woes-a “leverage unwind” that left $419 million in liquidations-serve as a stark reminder that not all digital assets are created equal. While gold and silver bask in their traditional glory, Bitcoin flounders, proving that even in the digital age, some things are best left in the past.

A Five-Year Safety Net for Indian Banks

Indian banks, with their “fortress balance sheets,” are so well-prepared that one might think they’ve been stockpiling capital in anticipation of a financial apocalypse. The Governor’s assurance that they won’t need fresh capital for five years is as reassuring as a priest’s promise of eternal salvation.

As for the IDFC and US securities, the Governor dismissed concerns with the nonchalance of a man who’s seen it all. “It’s just a valuation change,” he said, as if that explained everything.

Future Outlook: The April Pivot

As the briefing concluded, the focus shifted to April, when the RBI will presumably adjust its policies to match the latest CPI methodology. A spectacle of bureaucratic theatrics, no doubt. For now, the e-Rupee will continue its slow march toward relevance, while the Indian citizen clutches their cash with the devotion of a medieval pilgrim.


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2026-02-23 14:00