The government of India has recently launched the pilot version of its most awaited digital currency – Digital Rupee (e₹-R).
Digital Rupee is the central bank digital currency (CBDC) of India backed by the Reserve Bank of India. This currency holds equal value as fiat currency (cash & coins) in India.
Today the chairperson of the Mahindra group Mr. Anand Mahindra shared an interesting video of him doing a transaction in Digital Rupee to buy fruits from a vendor.
His recent tweet says that he learned about the digital Rupee at the Reserve Bank’s (RBI) board meeting. Right after the meeting he visited a nearby fruit vendor who is one of the first merchants to accept Digital Rupee.
This video shows the live demo of digital rupee transactions.
RBI announced the launch of the pilot version of the Digital Rupee (e-rupee) on 1st December 2022 for the retail segment.
Digital Rupee will be distributed through banks only. In the first pilot phase of the e-Rupee, only four banks are involved – State Bank of India, ICICI Bank, Yes Bank, and IDFC First Bank.
The Digital Rupee trail has launched in selected cities only with closed user group (CUG) participants.
Key Pointers of Digital Rupee (e-Rupee) Launch:
- Closed User Group (CUG) of merchants and customers will participate in the first pilot phase of India’s Digital Currency.
- Digital rupee or e-Rupee would be issued in the form of a digital token which holds a legal tender status same as Cash and coins we use for our daily needs in India.
- Transaction in Digital rupee can be done between Person to Person (P2P) and Person to Merchant (P2M).
- Payments to merchants can be made using QR (Quick Response) codes displayed at merchant locations.
- Digital Rupee transactions can be carried out through a digital wallet offered by the participating banks and stored on mobile phones or devices.
- This CBDC will not earn any interest like Cash but it can be deposited in the bank.
Currently, the pilot phase is in action only in selected cities such as Mumbai, New Delhi, Bangalore, and Bhubaneswar. Gradually it will get expanded to other cities across the country to include more users and banks.
In the future, if you see one more option other than GPay, Paytm and Phone Pay at your vegetable vendor’s door; don’t get confused.
Stay Updated on Digital Rupee, CBDC India, Digital Currency India, RBI Digital Rupee.
Read More –