The decision has been taken for our CBDC, the Digital Rupee, to be interest free. Additionally, we have decided to adopt a two-tier distribution model to manage potential risks to monetary policy and financial stability. This two-tier model will also ensure that commercial banks continue to be fully-involved in our CBDC journey and that there is no disintermediation of banks in the CBDC distribution.
Once inflation has been aligned with the 2% target, will interest rates remain at higher levels – once coined  1/4  BIS - Central bankers' speeches  "normal" – in a more permanent manner? Or should we expect the persistently low interest rates, observed post-2008, to return and be our "new normal" again?