RBI-Backed Digital Rupee/ e-Rupee: Have you taken digital rupee?, know how you will be able to do transactions with it Reserve Bank of India is going to launch retail digital rupee on 1 December. This is the first project of RBI in the case of retail digital currency. RBI has informed that during the pilot project of Digital Rupee, the entire process of its manufacture, distribution and retail use will be tested.
RBI has already launched Digital Rupee for wholesale transactions on 1 November. According to the Reserve Bank, Digital Rupee will be known as Central Bank Digital Currency (CBDC) in the country. At present, the retail Digital Rupee is being rolled out only at selected locations in the country and can be used by customers as well as merchants.
Digital Rupee
RBI has informed that Digital Rupee will work like a digital token and it is a digital form of currency notes issued by RBI. The use of Digital Rupee in any kind of financial transaction will be completely legal and valid.
How to use Digital Rupee
Local banks will dot he distribution of digital rupee. Through digital wallets, Digital Rupee can be used for transactions between two individuals or for business purposes. RBI states that users will be able to transact through digital rupees from digital wallets of banks stored in mobile phones. For its use, the shopkeeper has to pay in digital form, then the payment can be made through the QR codes displayed with the merchant.
These 8 banks are included in the pilot project
- State Bank of India
- ICICI Bank
- Yes Bank
- IDFC First Bank
- Bank of Baroda
- Union Bank of India
- HDFC bank
- Kotak Mahindra Bank
The value of Digital Rupee is also like that of paper notes.
According to RBI, the value of Digital Rupee will also be equal to that of paper notes. The Reserve Bank has divided digital currency into two categories, CBDC-W and CBDC-R.
CBDC-W currency is used to refer to wholesale currency and CBDC-R to refer to retail currency. Digital Rupee is considered very important in the direction of developing the country’s economy digitally.
