Loading...
UPSC 2024: Consider the following statements in respect of the digital rupee: 1. It is a sovereign currency issued by the Reserve Bank of India (RBI) in alignment with its monetary policy. 2. It appears as a liability on the RBI’s balance sheet. 3. It is insured against inflation by its very design. 4. It is freely convertible against commercial bank money and cash. Which of the statements given above are correct?
(a)1 and 2 only
(b)1 and 3 only
(c)2 and 4 only
(d)1, 2 and 4
Attempt This Question
Not attemptedCorrect Answer: (d) 1, 2 and 4
The RBI’s concept note describes the digital rupee as ‘sovereign currency issued by the RBI in alignment with its monetary policy’ and says it ‘shall appear as a liability on the central bank’s balance sheet’ (Statements 1 & 2 correct). It will be ‘freely convertible against commercial-bank money and cash’ (Statement 4 correct). A CBDC is no more immune to inflation than paper currency, so Statement 3 is incorrect. Thus only 1, 2 and 4 are correct. ([economictimes.indiatimes.com](https://economictimes.indiatimes.com/wealth/save/how-rbis-central-bank-digital-currency-digital-rupee-will-work-how-e-rupee-is-different-from-digital-money/articleshow/94705498.cms?from=mdr&utm_source=openai))
Related Current Affairs
Related UPSC Questions
More from Digital Payments & Financial Inclusion
2023moderate
With reference to Central Bank digital currencies, consider the following statements: 1. It is possible to make payments in a digital currency without
2023moderate
Consider the following statements: 1. The Self-Help Group (SHG) programme was originally initiated by the State Bank of India by providing microcredit
2025moderate
Consider the following countries : I. United Arab Emirates II. France III. Germany IV. Singapore V. Bangladesh How many countries amongst the above ar
Related Indian Economy Topics
2024National Income & Economic Growth
With reference to the sectors of the Indian economy, consider the following pairs: Economic activity — Sector 1. Storage of agricultural produce — Sec
2024Infrastructure & Industry
With reference to Corporate Social Responsibility (CSR) rules in India, consider the following statements: 1. CSR rules specify that expenditures that
Frequently Asked Questions
What is the correct answer to this UPSC 2024 Indian Economy question?▼
The correct answer is option (d): 1, 2 and 4. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Digital Payments & Financial Inclusion question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2024, GS Paper 1, as Question 53. It falls under Indian Economy > Digital Payments & Financial Inclusion.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
How many UPSC Prelims questions have been asked from Digital Payments & Financial Inclusion?▼
UPSC has asked 20 questions from Digital Payments & Financial Inclusion (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.