India’s Digital Rupee Expands: Non-Banks to Offer Central Bank Digital Currency Wallets

India’s central bank, the Reserve Bank of India (RBI), has announced that it will allow non-bank payment system operators to offer central bank digital currency (CBDC) wallets. This move is expected to expand access to digital rupee wallets and provide users with more choices. The RBI stated that necessary changes will be made to the system to accommodate this new initiative. The Indian central bank has been conducting CBDC pilots for both the retail and wholesale segments, and enabling non-bank operators to offer CBDC wallets will further test the resiliency of the digital currency platform. However, it should be noted that cryptocurrency regulation in India is still undecided, with the Finance Minister stating that crypto assets cannot be considered currencies. The RBI Governor has also expressed concerns about the impact of cryptocurrencies on India’s financial stability and the rupee.