Digital currency is no different that what already exists in terms of digital representation of one's holding. Really curious to see how the tax payer is going to pay for a glorified database and what value is derived from it.
How fast is clearing and settlement in traditional Indian banking?
It depends on the system used for transaction[0]. For transaction under $1300 settlements are instant, while for amount more than that it ranges from 30 minutes to 24 hours.
During working hours on week days for largers amounts RTGS is real time and minimum amount is $2500 and is few seconds fast.
If they are anything like the US, then they already have a sophisticated database of financial transactions in support of their tax system and national security apparatus.
It's just a round-a-bout way of getting rid of cash so they can surveil all transactions