Central Bank Digital Currency In India: A Paradigm Shift

Abstract

Digital Currency has emerged as a vital tool in major sectors, and now the shift towards small ‎and medium enterprises and Individual payments has transformed our traditional payment ‎system into a digital payment system. Many Countries are planning to use CBDC India as a step ‎ahead in starting its pilot study in major cities at 2 phases. The study aims to understand ‎the acceptance level of CBDC in the payment system, analyse the usage pattern of payment ‎systems in India, and evaluate the paradigm shift of fair, safe, and transparent financial ‎transactions through CBDC. The research methodology applied for the study is analytical, with ‎a systematic sampling being considered for obtaining data. The statistical tool applied to the ‎data is multiple correlation. The study reveals that a majority of merchants, academicians, and ‎stakeholders are not only aware of CBDC but are also prepared to integrate it into their regular ‎financial operations. In contrast, the general public remains neutral regarding its potential to ‎curb black money. The authors also note concerns about the currency's potential volatility and ‎highlight the importance of the RBI ensuring a sufficient adjustment period for widespread ‎public adoption.