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 aga

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Q: 51 (IAS/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?

question_subject: 

Current Affairs

question_exam: 

IAS

Based on the search results, the digital rupee is indeed a sovereign currency issued by the Reserve Bank of India (RBI) in alignment with its monetary policy, making statement 1 correct. It appears as a liability on the RBI's balance sheet, confirming statement 2 as correct. However, statement 3 is incorrect because the digital rupee is not insured against inflation; like physical cash, its purchasing power can diminish with rising inflation. Statement 4 is correct as the digital rupee is freely convertible against commercial bank money and cash. Therefore, the correct statements are 1, 2, and 4, making option 4 the correct choice.