RBI to study Blockchain technology to curtail paper currency

Deputy Governor of Reserve Bank of India(RBI) H R Khan on Friday said that the central bank may soon set up a committee to study the use of ‘Block chain’ technology to reduce the use of paper currency. RBI to study Blockchain technology to curtail paper currency
“Block chain technology is said to be providing a lot of flexibility in terms of financial transactions and has come out of the Bitcoins. So this makes up a need to study, how to use this Block chain technology in financial transactions where the entire data systems moves up to a different level as told by the Deputy Governor H R Khan to the reporters at an event organized by the IDRBT.

There is a group of officials from RBI, IDRBT and industry people who are appointed to look into this. There is a tremendous potential (in Block chain technology). On Brexit, Deputy Governor H R Khan said the impact will be short term and if there is a medium- term impact than there are systems in place to tackle the situation.

Khan also said that they are closely monitoring the situation giving our macro fundamentals; certainly we will be affected by what is happening globally. But today we are in a much better position to weather the storm. We are not in those earlier days of Fragile Five or Turbulent Tens.

On the rupee volatility, H R Khan said RBI has USD 363 billion of forex reserves and enough tools to handle volatility crisis. RBI, the Deputy Governor H R Khan said, is in discussions with telecom regulator Trai on the issues of tariff rates for mobile banking. The central bank may soon come out with a Customer Liability Framework for Debit and Credit cards that will fix liability of a bank or a customer in the case of a fraud or unauthorized use, he added.