An internal panel of the RBI is taking a close look at the model of its proposed digital currency and will come out with its decision “very soon”, deputy governor B.P. Kanungo said on Friday.

The RBI had earlier announced its intent to come out with an official digital currency, in the face of the proliferation of cryptocurrencies such as Bitcoin about which it had raised many concerns. The government last week moved to ban private cryptocurrencies.

“With regard to digital currency, I think we have already released our document. Our digital payment document spells out that digital currency is work in progress in the RBI,” governor Shaktikanta Das told reporters on Friday.

Here, RBI deputy governor said V.P. Kanungo said, “We had a committee that is still on the drawing board. An internal committee is taking a close look to decide on the model of the central bank digital currency and you will hear from the RBI very soon,” he said.

“In India, the regulators and governments have been sceptical about private digital currencies and the associated risks. The RBI is exploring the possibility as to whether there is a need for a digital version of fiat currency and how to operationalise it,” the RBI had said in a report in January.