Q. Consider the following statements:
1.RBI will issue the digital rupee but banks will distribute it to the private sector like fiat currency.
2.The use of cash as a mode of payment has grown in India the past years but the use of cheques and demand drafts has dropped.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: C
Notes:

Statement 1 and 2 are correct. RBI will issue the digital rupee but banks will distribute it to the private sector like fiat currency. A recent research paper by economists at the International Monetary Fund shows that a) The use of cash as a mode of payment has actually grown in India between 2005 and 2020, b) The use of instant payment options such as NEFT and IMPS has increased, c) The use of cheques and demand drafts has dropped sharply.

Source: ForumIAS