This is the electronic version of paper currency, know how it is different from UPI. RBI Retail Digital Rupee (E-Rupee) Launch; All You Need To Know | NewsBust This is the electronic version of paper currency, know how it is different from UPI. RBI Retail Digital Rupee (E-Rupee) Launch; All You Need To Know | NewsBust

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This is the electronic version of paper currency, know how it is different from UPI. RBI Retail Digital Rupee (E-Rupee) Launch; All You Need To Know

By Amit - December 1, 2022

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New Delhi18 minutes ago

The Reserve Bank of India (RBI) is launching the pilot project of retail digital rupee (e-rupee) today i.e. on 1 December. In the pilot project, the entire process of digital rupee creation, distribution and retail use will be closely examined. Changes will be made in the retail digital rupee on the learnings from this test, then it will be released for everyone to use.

RBI said that the pilot will have a closed group of customers and merchants covering select locations. E-Rupee will be distributed through banks. Users will be able to keep it in digital wallets on mobile phones and devices. With digital wallet – Person-to-person or person-to-merchant transactions will be done. Merchant can also be paid through QR code.

There are many questions in people’s mind regarding e-Rupee that how will it be? How will this work? Apart from this, there is also a question in the mind of many people that how is it different from UPI? We have come up with answers to your similar questions….

first understand What is?
e₹ is a digital form of currency based on blockchain technology. It is of two types – CBDC Wholesale and CBDC Retail. Its value will also be equal to the current currency. This will also be accepted like physical currency. e₹ can be kept in the mobile wallet. There will be no need for a bank account to keep it.

On November 1, the RBI launched the pilot of wholesale e-Rupee. These are only for large financial institutions including banks, large non-banking finance companies and other large transactional institutions. For this SBI, BOB, Union Bank, HDFC, ICICI, Kotak Mahindra Bank, Yes Bank, IDFC First Bank and HSBC were selected. CBDC Retail is launching today.

E-Rupee can be converted into other form of money
E-Rupee can be converted into any other form of money. 8 banks have been selected for the CBDC retail pilot, but the first phase will start with State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank in four cities. After this, four more banks including Bank of Baroda, Union Bank, HDFC Bank and Kotak Mahindra Bank will join this pilot.

Pilot will start in four cities
The pilot will initially cover four cities – Mumbai, New Delhi, Bengaluru and Bhubaneswar and will gradually expand to Ahmedabad, Gangtok, Guwahati, Hyderabad, Indore, Kochi, Lucknow, Patna and Shimla. More banks and more cities can be included gradually.

How will e-rupee transaction be different from UPI?
Money should be deposited in the bank account for making transactions through UPI. For this, either we have to deposit the physical currency in the account ourselves or get the money transferred from somewhere to our bank account. This means that one or the other has to make a deposit in the physical currency account only once for this transfer to be possible. But after the introduction of e-rupee, physical currency will not have to be deposited in the account even once.

There will be no need of bank account in e-rupee transaction. RBI will transfer money directly to digital wallet instead of physical currency. This means that the way you keep notes in your pocket now, instead of keeping e-rupee in your wallet, you will be able to pay each other. This digital wallet will be provided by the bank. What will be its complete process, it will become more clear in the coming days when it will be fully launched.

Reason for introducing e-rupee?
It will not replace the existing digital form of rupee, but will provide another medium of transaction. RBI believes that e-Rupee will give a boost to the digital economy. It will help in achieving the goal of reducing the cash economy. It will also help in reducing the transaction cost. Payment system will become more effective.

Is e-rupee better than other digital payments?
Suppose you transact in e-rupee instead of your bank account through a UPI system. In this, there is no need for interbank settlement as soon as the cash is handed over. Due to this, transactions from the payments system will be done in more real time and at a lower cost. The bank acts as an intermediary in the UPI system, hence settlement is required.

Will it prove beneficial for the common people?
With the advent of digital currency, the cost of transactions for common people and businesses with the government will be reduced. For example, a worker in UAE gets 50% of his salary in the form of digital money. With this, these people can send money to their relatives in other countries easily and without paying much fee. Apart from this, e-rupee will also work without internet.

Rs 15-17 spent on printing Rs 100 note
According to RBI, it costs Rs 15-17 to print a Rs 100 note in India. A currency note lasts for a maximum of four years. The central bank has to print new notes which cost thousands of crores of rupees. In the financial year 2021-22, RBI had printed 4.19 lakh additional notes, which were worth thousands of crores. The cost of digital currency is almost zero.

There is more news…

Amit

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