The RBI stated in a concept note on Central Bank Digital Currency that CBDC is not intended to replace current forms of payment but rather to supplement them. It is also intended to give users another option for making payments rather than to do so.

The Digital Rupee (e) system will further support India's digital economy, make the monetary and payment systems more efficient, and help to advance financial inclusion, according to the paper. These systems are affordable, accessible, convenient, efficient, safe, and secure.

CBDC is a central bank-issued digital version of currency notes. The majority of central banks worldwide are investigating the issuance of CBDC, although the main drivers behind it depend on the particular needs of each nation.

According to the letter, 'CBDC needs to combine all the properties that physical currency represents, including anonymity, universality, and finality, in order to perform the role of a medium of exchange.'

According to the note, more than 60 central banks have expressed interest in CBDC globally. A few implementations in the retail and wholesale categories are currently undergoing testing, and many more are developing, testing, and/or launching their own CBDC frameworks.

The concept note outlines the history, inspiration, design characteristics selected, and other policy frameworks for the nation's e-rupee system.

According to the statement, the goal is to create an open, inclusive, interoperable, and innovative CBDC system that will support India's modern digital economy.

The report also pointed out that, given the fact that only a small number of countries have so far issued CBDCs, their prospective impact on monetary policy is still uncertain and completely hypothetical.

After taking into account the issues with anonymity, appropriate analysis of the Big Data produced by CBDC can support the development of evidence-based policy.

It might develop into a valuable data source for service providers looking for insights on financial products. Additionally, the information would be very helpful for enforcing money laundering laws 'It read. 

The RBI stated that the goal of the concept note's release was to raise public knowledge of CBDCs in general and the proposed features of the digital rupee in particular.

The memo explains the Reserve Bank's strategy for introducing the digital rupee.

The Reserve Bank stated that its strategy is guided by two fundamental considerations: to produce a digital rupee that is as similar to paper money as possible; and to manage the introduction of the digital rupee in a seamless manner.