India has announced that all public and private banks will be allowed to offer the option of using digital currency for transactions, as long as they are compliant with the Reserve Bank of India’s (RBI) new digital currency policy.
In a statement, the RBI announced that it will allow all banks to allow online trading of its currency as of March 1, 2018.
The new policy has come into effect immediately, the government said in a statement.
In the statement, RBI said it will facilitate digital payments in the country with a view to ensuring that the country’s transactions are as efficient as possible and in line with the RBI’s policy to encourage innovation.
It is expected that this will be the first time that a central bank has allowed banks to issue digital currency in India.
This will give consumers access to cheaper, faster and more convenient banking services and, ultimately, create a new pool of digital currency investors.
The RBI had earlier announced that banks will not be allowed in the future to issue any form of digital money for non-payment of interest charges.
This is the first step in a process of enabling the digital currency to be used in the banking sector.
According to the government, the digital payments platform will allow customers to make online transactions using their existing digital currency accounts and will provide an alternative to traditional financial institutions, which may not be able to provide the same level of convenience for customers as they do now.
The digital payments feature will be offered at the beginning of 2019, the statement said.
The RBI said that this decision will allow banks to begin providing digital payments to customers in a transparent manner.