The digital rupee will be issued in the same denominations that paper notes and coins are currently issued.
Keeping it short
- On December 1, the digital rupee will become a reality.
- The digital rupee will be launched in India on a pilot basis.
- People will be able to pay the merchants using QR Codes.
Crox Media Desk reports: “The digital rupee is finally becoming a reality, with the RBI announcing its introduction.” The RBI says the e-rupee would be in the form of a digital token that would possess legal tender. It will first be launched on a trial basis for retail. However, it won’t be available to all retailers as of now. The pilot would be conducted with a select closed user group (CUG) that includes both customers and merchants.
The digital rupee would be issued in the same denominations that we are using now. But how will one get it? One will get it through the banks. People will be able to transact with e-rupee via a digital wallet that will be offered by banks. The payment process will be quite similar to what it is today.
People will be able to pay merchants using QR codes displayed at their locations, which is an easier way to exchange money. “E-Rupee will offer several features like trust, safety, trust, and settlement finality.” RBI said in cash, the digital rupee won’t earn any interest, but it can be converted in other forms, like deposits and banks.
Initially, the digital rupee will be launched in four cities: Mumbai, New Delhi, Bengaluru, and Bhubaneswar. Later on, it will be available in major cities such as Gangtok, Ahmedabad, Kochi, Lucknow, Patna, and Shimla. The government says that the digital rupee will be gradually expanded to brands, users, and locations.
Additionally, a total of eight weeks will be spent participating in this test version. But the first phase will begin with four banks, including SBI, ICCI, Yes Bank, and IDFC Bank. The remaining four banks, including Bank of Baroda, Union Bank of India, Kotak Mahindra Bank, and HDFC Bank, will join.
