Focus is on building more use-cases for CBDCs; not in rush for public launch: RBI DG – The Hindu BusinessLine
RBI Deputy Governor T Rabi Sankar discusses CBDC, AI, and financial inclusion at Global Fintech Fest 2025.

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The Reserve Bank of India (RBI) is in “no rush” for public launch of central bank digital currency (CBDC) yet, and is instead focussing on adding more layer of uses cases and programmability, Deputy Governor T Rabi Sankar said on the sidelines of the Global Fintech Fest 2025.

“We are right now focussing on creating sufficient use cases, particularly programmable ones. The area we are focussing on is that a user – who does not understand technology – should be able to attach a programme to the CBDC and then use it,” he said.

Rabi Sankar said the total number of CBDC users stands at around 70 lakh, and that the e-rupee can be effectively used for cross-border payments if other countries also adopt the digital currency.

AI in fin

AI in financial sector

He said that at its core, AI can expand financial access, strengthen safeguards, and reimagine efficiency. It can lead to better credit assessment through the use of alternative data such as transaction patterns and utility payments of unbanked customers.

“Ability to use massive data sources could help in real-time detection of frauds through identification of unusual transaction patterns or improve market risk modeling. Operational efficiency and cost reduction can get a paradigm shift using AI, for example, in back-office processes, KYC, loan processing etc,” he said.

However, as AI systems are trained on vast amounts of data, it is only natural that they also learn the biases inherent in data. AI systems trained in biased historical data are likely to perpetuate or amplify historical discrimination, for example, in credit profiling or hiring.

“Even small biases in training data can lead to systematic exclusion of population groups from accessing financial services. Algorithmic opacity would make it difficult to identify possible biases,” he said.

“The key question is ‘how do we enable innovation while safeguarding systemic stability?’ This balance is a necessity for ensuring that AI strengthens rather than undermines the financial system,” he added.