HomeTechnologyHow will digital rupee be different from UPI, will it be able...

How will digital rupee be different from UPI, will it be able to be used like a note


Reserve Bank of India i.e. RBI has launched a pilot project of digital currency in the country. With this, a new beginning has been made on the front of digital payments in the country.

How will digital rupee be different from UPI, will it be able to be used like a note

Reserve Bank of India i.e. RBI has launched a pilot project of digital currency in the country.

Image Credit source: Representational Image

Reserve Bank of India i.e. RBI has launched a pilot project of digital currency in the country. With this, a new beginning has been made on the front of digital payments in the country. Now there will be a question in your mind that how it will work and how you will be able to use it. Let’s understand it in detail.

What is E-Rupee?

Retail e-Rupee is the electronic version of cash. It is mainly used for retail transactions. Everyone will be able to use it. It will be available to all in the private sector, non-financial customers and businesses. Using this, a person will be able to make payment and settlement easily. In this, the responsibility of payment will be directly with the central bank. RBI had earlier said that CBDC will be a legal tender issued by the central bank in digital form.

How is e-Rupee different from UPI?

In the Unified Payment Interface (UPI), the transaction remains in cash. In this the method is digital. But the payment is through cash. On the other hand, there will be no cash transaction in E-Rupee.

How will this work?

Initially you will be able to buy e-rupee from a total of four banks. These include State Bank of India (SBI), ICICI Bank, Yes Bank and IDFC First Bank. It will be in the form of a digital token that will represent legal tender. It will be issued in the same denomination as paper currency and coins and will be distributed through banks. Users will be able to transact with e-Rupee through digital wallets offered by banks and stored in mobile phones and devices.

Transaction can be both person to person and person to merchant. Payments can also be made to merchants using the QR code. RBI said that e-rupee will provide facilities like physical cash like trust, security. In the case of cash, it will not earn any interest and can be converted into other forms of money such as various deposits in banks.

Let us tell you that people in Mumbai, New Delhi, Bengaluru and Bhubaneswar will be able to transact with e-R through digital wallets offered by participating banks and mobile phones/devices from December 1, 2022 in the first phase Will be stored, which will later be expanded to nine more cities. The central bank said that this pilot project will initially cover four cities, Mumbai, New Delhi, Bengaluru and Bhubaneswar and will later be expanded to Ahmedabad, Gangtok, Guwahati, Hyderabad, Indore, Kochi, Lucknow, Patna and Shimla.



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