Context

• 'Report on Currency and Finance (RCF) 2023-24' has been released by the Reserve Bank of India (RBI).

Key Highlights

• Digital Revolution: India is at the forefront of the digital revolution. The digital revolution energizes banking infrastructure and public finance management systems, including direct benefit transfers and tax collection.
• Digital Economy: India's digital economy is expected to contribute 20% of the country's GDP by 2026. Its current contribution is around 10%.
• Internet penetration in India will be 55 per cent in 2023.
• Internet users have increased by 199 million in the last three years.
• The Reserve Bank of India is at the forefront of pilot testing of e-rupee, the central bank digital currency (CBDC).

Mobile Data Utility:

• India's Mobile data consumption per gigabyte (GB) rate is the lowest in the world, averaging Rs 13.32 (USD 0.16) per GB.
• India is also one of the countries with the world's highest mobile data consumption, with average monthly user consumption expected to be 24.1 GB in 2023.

Challenges of digitization:

• Complex financial products
• Lack of greater interconnectedness
• Cyber ​​security risks
• Complexities related to financial fraud and customer protection,
• Implications for macro-financial stability

Reserve Bank of India (RBI)

• Established: April 1, 1935 (as per the provisions of the Reserve Bank of India Act, 1934)
• Earlier RBI was established in Kolkata, which was permanently shifted to Mumbai in the year 1937.
• Nationalization: In the year 1949
• Headquarters: Mumbai
• Current Governor: Shaktikanta Das

Monetary Policy Committee (MPC) 

• Formed (June 27, 2016): Under Section 45ZB of the Reserve Bank of India Act, 1934.
• Composition: As per section 45ZB the MPC consists of 6 members:
• Ex-officio Chairman: RBI Governor
• In-charge: Deputy Governor
• One officer of the bank nominated by the Central Board and
• 3 persons appointed by the Central Government