Source: TOI
Context:
At the Global Fintech Fest 2025, the Reserve Bank of India (RBI) announced the conceptualisation of a Unified Markets Interface (UMI) a new digital infrastructure aimed at tokenising financial assets and enabling settlements via wholesale Central Bank Digital Currency (CBDC). The initiative marks another milestone in India’s ongoing digital finance transformation.
Key Highlights:
- Unified Markets Interface (UMI):
- Designed to tokenise financial assets, improving the efficiency, transparency, and security of market transactions.
- Will facilitate CBDC-based settlement for wholesale market participants.
- Expected to enhance liquidity management and reduce transaction costs in financial markets.
- Complementary Digital Initiatives Launched:
- UPI Reserve: Introduced as an innovation for liquidity management and high-value UPI transactions.
- Internet of Things (IoT) Compatibility for UPI: Expands the ecosystem by allowing smart devices to initiate and process real-time digital payments.
Tokenisation
Tokenisation is the process of representing ownership or rights to an asset in the form of a digital token. Each token acts as a digital certificate of ownership that can be traded or transferred securely.
Examples
- Financial assets: Bonds, shares, mutual fund units, or government securities can be tokenised — each token represents a portion (fraction) of the asset.
- Physical assets: Real estate, gold, or artwork can also be tokenised so that multiple investors can hold small digital shares of a high-value asset.
