MOSCOW: Russia's central bank on Tuesday sought to reassure banks that any introduction of a digital rouble, something the regulator is considering, would not cause funding difficulties for lenders.

The central bank said it would provide banks with the necessary refinancing at close to the market rate should any lenders face liquidity deficits, in a report published on Tuesday.

The idea of the digital rouble was first floated in October last year. The central bank said it may issue it on top of existing cash and non-cash roubles to facilitate payments for individuals and businesses.

An additional form of Russia's national currency, the digital rouble would be issued digitally by the central bank and used to make remote payments and online settlements possible, the regulator said in October.

"With competition between banks and unchanged interest rates on money markets, loans should not become more expensive," the central bank said in introducing the report, which outlined how things would change for banks and their clients with the digital rouble's introduction.

"At the same time, the emergence of the digital rouble will result in the redistribution of parts of banks' interest income in favour of their clients."

Olga Skorobogatova, the bank's first deputy governor, has previously said the regulator will be ready to introduce a prototype of the digital rouble at the end of next year.