RBI: Digital Rupee To Be Launched On December 1: All You Need To Know!

According to the press release of RBI, the first pilot for retail use of the digital rupee, or e-rupee, will begin on December 1. To begin with, the Reserve Bank Of India has partnered with four banks in Mumbai, New Delhi, Bengaluru, and Bhubaneswar. Notably, these are, State Bank of India, ICICI Bank, Yes Bank, and IDFC First Bank. According to RBI, the pilot would initially only apply to the closed user group (CUG), which consists of participating consumers and retailers.

What Is An E-Rupee? How Will It Work?

The e-Rupee is a type of digital token that stands in for legal money, according to the RBI. Notably, the digital Rupee is issued in the same denominations as paper money and coins, unlike other cryptocurrencies. The RBI emphasised that consumers and businesses will receive electronic rupees, or e-Rupees, through middlemen like banks.

Also read: ‘Asked To Use 1 Pic’: Sidhu’s Father Takes A Dig At Industry People As He Talks About Burna Boy

Moreover, through a digital wallet provided by the qualified banks and kept on mobile phones or other devices, users would be able to conduct transactions using e-Rupee. Furthermore, the central bank clarified that both person-to-person (P2P) and person-to-merchant transactions in digital rupee are possible (P2M). As stated by the Central Bank, the users will be able to conduct online-like transactions utilising QR codes displayed at merchant locations to pay using e-Rupee.

The RBI’s press release reads, “The e-Rupee would offer characteristics of actual money, such as trust, safety, and finality of settlement. It can be converted to other forms of money, such as bank deposits, but it won’t pay any interest.”

As per the information provided by central bank, the introduction of the digital rupee will take place in phases. The pilot would initially commence with four banks in only four locations for the first phase: State Bank of India, ICICI Bank, Yes Bank, and IDFC First Bank in Mumbai, New Delhi, Bengaluru, and Bhubaneswar. Moreover, the pilot will further include four more institutions, including Bank of Baroda, Union Bank of India, HDFC Bank, and Kotak Mahindra Bank. The pilot’s scope will gradually be expanded to include more banks and users from various locations as required, said the RBI. Notably, the introduction of digital rupee or e-rupee from December 1, is seen as first step towards the central bank digital currency in the coming years!

Share on: