Digital Rupee or e-Rupee is a form of digital token that represents legal tender. Unlike cryptocurrencies, the digital Rupee is issued in the same denominations as paper currency and coins.
What is Digital Rupee: RBI has announced the launch of Retail Digital Rupee from December 1, which will be the first pilot project for retail digital currency.
Digital Rupee launch December 1: Ever since the era of digital transactions started in the country, people have lost the habit of keeping cash. Because whenever payment has to be made somewhere, people use Bhim UPI, PhonePe, GooglePay. Let us tell you, from tomorrow i.e. from December 1, Digital Rupee will come for Indians. RBI has announced the launch of Retail Digital Rupee from December 1, which will be the first pilot project for retail digital currency. But, today we will know how to use it and what are its advantages and disadvantages.
Will Be Launched For Retail Use
On 1 November 2022, the central bank launched Digital Rupee for wholesale transactions. But, now the Central Bank is launching this Digital Currency (CBDC) for retail use as well. According to RBI, during the pilot project of Digital Rupee for retail, the whole process of its distribution and use will be tested. It will be initially rolled out at select locations.
How Will Digital Rupee Work? (How To Use E-Rupee)
Just like we see cash in digital form in our bank account, we check our balance in the wallet. Some will also be able to see and keep Digital Rupee like this. Digital Rupee will be launched in two ways. The first wholesale transaction is for large transactions, which has started from 1 November. At the same time, the second one will be for the general public in retail, which is being launched from December 1. CBDC will be based on blockchain technology. It will be legal tender like paper currency. You will be able to pay whomever you want to pay with this and it will reach his account.
The CBDC will be reflected in the account in electronic form. CBDC can be replaced with paper notes. Transaction will be easier and safer than cash. It will work exactly like cash, but the transaction will be completed through technology. In a way it can be called electronic cash.
Payment Medium Will Be E-Rupee
According to the RBI, CBDC (Digital Rupee) is a medium of payment, which will be a legal tender for all citizens, businesses, and the government. Its value will be equivalent to a legal tender note with a safe store. After the introduction of digital currency, the need to keep cash with people will reduce.
Digital Currency Notes
E-Rupee will work like a digital token. That is, CBDC is the digital form of currency notes issued by RBI. People will use it for transactions just like currency. According to the RBI, the distribution of e-rupee will be done through banks. Through digital wallet, transactions can be done between person to person or person to merchant. Along with this, payment can also be done by scanning the QR Code.
Big Advantages Of E-Rupee (E-Rupee Benefits)
- Will be helpful in strengthening the digital economy.
- No need to keep cash in your pocket.
- Gee payment facility will be available like mobile wallet.
- Digit rupees can easily be converted into bank money and cash.
- There will be a reduction in the cost of sending money abroad.
- E-Rupee will work even without the internet.
- The value of e-Rupee will be equal to the existing currency.