Shaktikanta Das Press Conference Highlights: RBI Governor On CBDC, Crypto, Rates And More

We have been working on a central bank digital currency for the last 18-24 months, RBI Deputy Governor T Rabi Sankar said. "As announced in the budget, we will launch the digital rupee this year and test design features and other aspects of the currency this year," Sankar said.

Shaktikanta Das added that the RBI cannot introduce CBDC in haste. "There are plenty of risks, including cyber security risks we have to be mindful of. It is a new product which every central bank is approaching carefully," he said.

RBI Governor Shaktikanta Das warned investors in cryptocurrencies that they are doing so at their own risk.

"Investors must remember that cryptocurrency does not have any underlying, not even a tulip," he said.

RBI Governor Shaktikanta Das said the central bank's actions will demonstrate what levels of bond yields it is comfortable with.

"When we enter the new year, we will deal with the borrowing calendar. We have said that we will execute smoothly and in a non-disruptive manner," he said.

Das added that a few points have to be kept in mind while assessing government borrowings for the next year.

First, the overall public sector borrowings might be balanced out by the fact that the government will borrow directly from the market and pass on whatever is required for the NHAI. As such, borrowings from other public sector entities may be lower.

Also, the RBI has hiked the limit for foreign debt inflows via the voluntary retention route by Rs 1 lakh crore to Rs 2.5 lakh crore. This could help in supporting borrowings in the market.

Finally, small savings collections could also be higher by Rs 1-1.2 lakh crore next year.

RBI Governor Shaktikanta Das said the central bank holds "constant" interactions with market participants.

"Whether they have inherent reluctance in participating in auctions, is something the participants must answer. If they have concerns, we try to duly address the concerns," he said, adding that no sign of discomfort has been seen among them.

When the stance continues, there's no reason to tamper with rates, RBI Governor Shaktikanta Das said.

"The repo and reverse repo rate represent a particular stance. At the current juncture, when stance continues, there is no reason to make any changes or tamper with rates."

"We will follow a calibrated and well-telegraphed approach. You will know what our action will be, beforehand," he said.