RBI to study Blockchain technology to curtail paper currency

Overview: 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.

“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.