E-rupee to cut cost of cross-border remittances to 2-3%, says DEA secy

Central Bank Digital Currency (CBDC) or e-rupee can help halve the cost of cross-border remittances to 2-3 per cent, Economic Affairs Secretary Ajay Seth said on Friday.

Speaking at the Federation of Indian Chambers of Commerce & Industry’s (FICCI) annual general meeting, the secretary said that remittances to India are around $100 billion annually and, compared to the global level of 8-9 per cent, the cost in India is at 5 per cent of each transaction value.

“At the moment, cross-border payment is not a very efficient system; it takes time. At the same time, there is a cost factor.