The Impact of Digital Currency in India: Reducing Government Pressure on Printing, Distribution, and Storage

Author:Raj Kumari, Anuj Kumar*

Abstract:
The emergence of digital currencies has the potential to transform the financial landscape of India, offering significant advantages in reducing the logistical and economic pressures associated with traditional physical currency. With the growing adoption of digital payment systems and the government's push toward a cashless economy, the integration of digital currencies could alleviate the burden on the Reserve Bank of India (RBI) regarding the printing, distribution, and storage of physical currency notes. By replacing a portion of the physical currency with digital alternatives, the government could lower costs related to currency production, secure storage, and transportation. Additionally, digital currencies could enhance financial inclusion, streamline monetary policy transmission, and provide real-time tracking of transactions, reducing the risks of counterfeiting and black-market activities. The beginning of digital currencies presents a transformative opportunity for India's financial ecosystem. This paper explores the potential benefits and challenges of introducing digital currencies in India, assessing their impact on reducing governmental overhead and fostering a more efficient, transparent financial ecosystem. This paper also explores how the adoption of digital currency in India can alleviate the governmental burden associated with traditional currency management. We examine the economic, logistical, and societal benefits of transitioning to a digital framework, while also addressing the challenges that must be overcome to ensure successful implementation. Through this analysis, we aim to highlight the transformative potential of digital currency in reshaping India’s financial landscape and enhancing the overall efficiency of its monetary system.

Keywords:Digital Currency, E-Rupee, Financial Inclusion, Monetary Policy.

DOI:10.46333/ijtc/13/2/8

International Journal of Trade & Commerce (Vol: 13 Issue:2)