General Studies · Digital Currency
What is the primary function of a 'Central Bank Digital Currency' (CBDC-R) in the retail banking ecosystem compared to existing digital payment methods like UPI or IMPS?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It is a mandatory requirement for international wire transfers only
- 2It is a loyalty program issued by retail banks to encourage credit card usage
- 3It is a digital form of legal tender that represents a direct liability of the Central Bank rather than a commercial bank✓
- 4It acts as a private digital asset similar to Bitcoin for speculative investment
Correct answer
It is a digital form of legal tender that represents a direct liability of the Central Bank rather than a commercial bank
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