FM Nirmala Sitharaman Urges RBI to Advance Digital Rupee

Finance Minister Nirmala Sitharaman on Friday urged the Reserve Bank of India (RBI) to further advance its central bank digital currency (CBDC) initiatives and sharpen its capabilities with the digital rupee.

This push comes amid rapid developments in tokenisation, agentic AI, and quantum computing.

Sitharaman flagged cybersecurity as a key concern, warning that the capabilities of autonomous systems powered by artificial intelligence are growing faster.

She made these remarks while addressing the Global Fintech Fest 2026 in Mumbai.

The finance minister emphasized the importance of CBDC in enabling simultaneous movement of the asset and money legs of a transaction, citing the successful pilot of India's first tokenised corporate bond.

The bond and digital rupee moved at the exact same instant, with the transaction closing on the day payment was made.

Sitharaman noted that tokenisation could eliminate unnecessary intermediaries and make asset transfers almost instantaneous, but cautioned that greater transaction speed also means errors, fraud, and market shocks could spread at the same pace.

She highlighted the need to balance efficiency from emerging technologies with systemic-risk safeguards, particularly as agentic AI and quantum computing gain traction.

The finance minister also proposed setting up a federated industry platform to bring together the broader Indian technology ecosystem, giving the sector a credible collective voice internationally and helping companies navigate cross-border regulatory barriers.

This platform could engage foreign regulators and help Indian companies expand globally.

The remarks came after REC completed India's first tokenised corporate bond pilot under the Securities and Exchange Board of India's (SEBI) regulatory sandbox.

The successful pilot demonstrated the synergy between the two regulators, RBI and SEBI.

The finance minister's push for advancing CBDC initiatives and sharpening digital rupee capabilities is expected to have a significant impact on India's financial services ecosystem.

As the country continues to adopt emerging technologies, the need for a robust and secure digital currency infrastructure becomes increasingly important.

The proposed federated industry platform is also expected to play a crucial role in promoting India's technology sector globally.

In conclusion, the finance minister's remarks highlight the importance of advancing CBDC initiatives and sharpening digital rupee capabilities, while also emphasizing the need for robust cybersecurity measures and systemic-risk safeguards.

This development is expected to have a significant impact on India's financial services ecosystem and the country's technology sector as a whole.