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T Rabi Sankar, RBI deputy governor, said that the Reserve Bank of India is working towards a "phased execution strategy" for a Central Bank Digital Currency. He said that a pilot program to test a general-purpose cryptocurrency is possible in the near future.
"Every idea must wait for its time. Sankar suggested that CBDC may be in its final days. "It would be RBI’s endeavor, as we move ahead in the direction India's CBDC to take the necessary actions which would reinforce.

Sankar, a virtual keynote speaker at the Vidhi Centre for Legal Policy, stated that the central bank is examining several factors regarding the CBDC's scope and legal framework. This CBDC will likely coexist alongside cash and digital forms payments.

"CBDC will be in most, if not all, central banks around the globe. This will require careful calibration and a carefully planned approach to implementation. He said that stakeholder consultations and drawing board considerations are crucial. "But, pilots in the wholesale and retail segments might be possible in the near future."

According to the deputy governor, CBDC is a legal tender that has been issued by a central banking institution in digital coin form. It is interchangeable with fiat currencies one-to-one and it is identical to a fiat currency. Sankar stated that only its form was different.

This means that India is now part of a group of major economies that are evaluating the issue of their own digital currencies.

Shankar cited a study done by the Bank of International Settlements. It revealed that 86% of world's central banks are currently researching CBDC, while only 60% are actually using it. A mere 14% of central banks are currently in pilot testing.

He stated that a legal framework was necessary to allow for the launch of a CBDC. This will include amending several sections, 24,25,26 – of the RBI Act, as well as provisions of Coinage Act of 2011 and Foreign Exchange Management Act and Information and Technology Act.