Central Bank Digital Currency and Farmer Empowerment in India- Achieving Sustainable Development Goals through Digital Agricultural Support

The advent of Central Bank Digital Currencies (CBDCs) is a paradigm shift in the financial sector. CBDCs would significantly impact the banking sector as well as the economy of agriculture. It would make the financial system easy to use and accessible, but CBDCs are risky for traditional banking and financial safety. It would reduce the cost of traditional banking, as well as making it easy to obtain loans for farmers and increasing lending speed. This research analyses the possible effect of CBDC implementation on the Indian banking sector and Agricultural economy considering major financial parameters like bank deposits, transaction volume, and financial intermediation. Since real-world data for CBDC adoption is scarce as it is implemented in pilot stages, hypothetical data was created with reference to the trend. The research employed statistical and econometric analysis that entails the use of ARIMA forecasting to identify adoption trends, correlation, regression analysis and trend analysis for determining long-term finance behaviour. This research give a framework on how CBDC can align with UN- Sustainable Development Goals. According to the research, growth in adoption of CBDC may be concurrent with reduced traditional bank deposits, which can redefine banks' functions as money-intermediaries. At the same time, it offers banks opportunities to innovate and incorporate digital currency solutions into their products. This research offers timely insights to policymakers and financial institutions.