Ratnesh Kumar Singhai, Regional Manager (AGM) and Head of Ratlam and Jhabua Districts, State Bank of India, discusses the future of digital currency, financial security, digital banking, financial inclusion and the importance of developing a culture of savings among young Indians.
India’s financial ecosystem is undergoing a significant transformation with the growing adoption of digital banking and payment technologies. Among the emerging developments, Central Bank Digital Currency (CBDC), popularly known as the Digital Rupee, holds considerable potential to reshape the way financial transactions are conducted. As a digital form of the Indian Rupee issued by the Reserve Bank of India (RBI), CBDC introduces a new dimension to the country’s evolving digital payment landscape.
In a conversation with Radio Vibes, Ratnesh Kumar Singhai, Regional Manager (AGM) and Head of Ratlam and Jhabua Districts, State Bank of India (SBI), shared his perspective on the potential of CBDC, the future of digital payments, cybersecurity, financial inclusion and the importance of financial discipline, particularly among young people.
Q. What is Central Bank Digital Currency (CBDC), and how could it transform the existing payment system?
CBDC, or Central Bank Digital Currency, is essentially the digital form of our physical currency, the Indian Rupee. It is issued by the Reserve Bank of India and is popularly known as the Digital Rupee or e₹.
We are already familiar with digital payment platforms such as UPI, but CBDC introduces another dimension to the digital financial ecosystem. While UPI facilitates payments by transferring money between bank accounts, CBDC allows users to hold digital currency in a dedicated CBDC wallet, much like carrying physical cash in a wallet.
For instance, if I want to transfer ₹5 to you, I can transfer the digital currency directly through my CBDC wallet. The Digital Rupee is available in denominations corresponding to physical currency, with digital tokens representing monetary value.
I believe CBDC has the potential to transform payment systems. It could make transactions more efficient and introduce new possibilities in the way money is transferred and managed. It may also help address certain risks associated with conventional digital payment processes.
Q. Can CBDC help address the growing problem of cyber fraud and digital financial theft?
Definitely, I believe it has the potential to contribute to a more secure digital payment ecosystem. Today, one of the major concerns is the increasing number of cyber frauds involving fraudulent links, calls and requests for sensitive banking information.
With CBDC, transactions take place through digital wallets, offering a different mechanism for transferring currency. This could help reduce certain vulnerabilities associated with conventional digital payment processes.
However, customers must continue to follow safe digital banking practices. Technology alone cannot eliminate cybercrime. Individual awareness and caution remain equally important.
Q. Digital banking has made financial services more accessible, but cyber fraud remains a concern. What precautions should customers take?
The first and most important thing is never to share your PIN, CVV, banking password or other confidential information with anyone over a phone call.
Fraudsters often call customers pretending to be bank representatives and create urgency by claiming that their debit cards are about to expire or require an upgrade. Customers should remember that banks do not ask for confidential banking credentials over calls.
At SBI, we have introduced authenticated calling arrangements through designated 1600-series numbers. Customers should remain cautious about calls from unknown numbers and verify the caller’s authenticity before sharing any information.
They should also never click on suspicious links received through WhatsApp, SMS or other platforms. In particular, APK files shared through unknown sources can contain malicious programmes that may compromise their devices and banking information.
If a customer accidentally shares sensitive information or suspects fraud, they should immediately contact the bank’s customer care at 1800 1234, take necessary steps to block the affected card or banking access and report cyber fraud through the national helpline 1930.
Q. How is SBI making digital banking more accessible to senior citizens and people in rural areas?
Financial inclusion is an important priority. In the Ratlam and Jhabua districts, we have appointed more than 200 Customer Service Points (CSPs) to extend banking facilities to people in rural and underserved areas.
These centres provide several services, including account opening, passbook printing, nomination facilities and access to small loans. This helps customers access essential banking services without having to travel long distances to a bank branch.
We have also introduced the Jeevan Pramaan facility, through which pensioners can digitally submit their life certificates. This is particularly helpful for senior citizens who otherwise have to visit bank branches repeatedly for pension-related formalities.
Such initiatives are making banking more convenient and strengthening financial inclusion at the grassroots level.
Q. What role do schemes such as Pradhan Mantri Jan Dhan Yojana play in India’s financial inclusion journey?
Pradhan Mantri Jan Dhan Yojana, launched in 2014, has played a significant role in bringing people into the formal banking system. The scheme enabled individuals across rural and urban India to open basic bank accounts, including zero-balance accounts.
Over the years, these accounts have also become an important channel for accessing government welfare schemes and financial benefits. Facilities such as direct benefit transfers and access to schemes like Pradhan Mantri Jeevan Jyoti Bima Yojana and Atal Pension Yojana have helped strengthen financial inclusion.
Such initiatives contribute to financial literacy, encourage savings and enable more people to participate in the formal economy. They also support India’s broader vision of becoming a developed nation by 2047.
Q. What would be your advice to young people, particularly Gen Z, who are beginning their financial journey?
My advice to young people is simple: the moment you start earning, develop the habit of saving.
I would recommend setting aside around 30 per cent of your income for savings, depending on your financial circumstances. Even if someone earns ₹15,000 a month, they can begin with a small investment of ₹500 or ₹1,000 through a Systematic Investment Plan (SIP).
The most important thing is to start early and remain consistent. Compounding is often described as the eighth wonder of the world because it allows investments to grow over time.
Young people should understand that financial discipline is not simply about how much they earn but also about how much they manage to save and invest.
Q. Many young investors make impulsive decisions based on stock market movements. What approach should they follow?
Investments should never be driven by short-term market movements or impulsive decisions. My advice is to always invest your surplus money and remain invested for the long term.
When I say long term, I mean a period of five, eight or even ten years. Investors should not panic over short-term fluctuations or withdraw their investments simply because the market experiences temporary movements.
Those beginning their investment journey can consider starting with relatively less volatile options, such as large-cap mutual funds, depending on their risk appetite. As their financial knowledge and understanding improve, they can explore other categories, keeping in mind that higher potential returns also come with higher risks.
The most important investment mantra is: Stay invested and think long term.
Q. What would you suggest to young people opening their first bank account?
For someone opening their first bank account, I would suggest making full use of the digital banking facilities available.
At SBI, customers can register for the YONO app and access several banking services digitally. Whether it is checking account balances, making transactions or managing other banking requirements, the app makes banking more convenient and reduces the need for frequent branch visits.
My second suggestion is to begin investing early. Even a small SIP of ₹100 per month can help develop the habit of investing. Once a person starts earning, they can gradually increase the amount according to their financial capacity.
The objective should be to develop financial discipline from an early age rather than waiting until one starts earning a substantial income.
As India continues to embrace digital financial services, CBDC represents an important step in the evolution of the country’s payment ecosystem. Alongside technological innovation, accessible banking services and financial inclusion, greater awareness of cybersecurity and responsible investment practices will remain essential. As Singhai emphasises, the future of banking will depend not only on technological advancements but also on informed customers, financial discipline and the ability to adapt to an increasingly digital economy.