ROLE OF CENTRAL BANK DIGITAL CURRENCY IN THE DEVELOPMENT OF INDIA
AUTHOR – PRIYADHARSHINI B, STUDENT AT SCHOOL OF EXCELLENCE IN LAW (SOEL)
BEST CITATION – PRIYADHARSHINI B, ROLE OF CENTRAL BANK DIGITAL CURRENCY IN THE DEVELOPMENT OF INDIA, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 6 (9) OF 2026, PG. 388-394, APIS – 3920 – 0001 & ISSN – 2583-2344. DOI – https://doi.org/10.65393/IJLRV6I942
ABSTRACT:
Central Bank Digital Currency (CBDC) is a digital form of sovereign currency issued and regulated by a country’s central bank. Similar to physical cash, CBDC can be used for payments and financial transactions, but it exists in electronic form and can be accessed through digital wallets, banking applications, and other online payment systems. In recent years, CBDC has gained considerable importance in India due to the rapid expansion of digital payments, financial technology, and internet-based banking services.
This study examines the role of CBDC in the development of India by analysing its impact on the financial and economic system. It highlights how CBDC can strengthen digital transactions, encourage a cashless economy, improve financial inclusion, and reduce illegal financial activities such as money laundering and black money circulation. The study also discusses the importance of CBDC in improving the efficiency of monetary policy and reducing dependence on privately issued cryptocurrencies and stablecoins. This paper explores how the Digital Rupee can contribute to faster and more affordable cross-border transactions while enhancing transparency and trust within the financial sector.
Keywords: Digital Currency, Digital Payments, Cashless Economy, Financial Inclusion, Cryptocurrency, Economic Development, Indian Economy, Reserve Bank of India.