Digital currency launched in 4 cities in India. What are digital currency? And how do they work?

Digital currency launched in 4 cities- Digital currency or E-Rupee has been launched in India on 1 December. In the first phase of Reserve Bank of India (RBI), 4 banks have been launched along with State Bank of India (SBI), ICICI Bank, Yes Bank, IDFC Bank. Right now it has been started as a pilot project. With the introduction of digital form, we also need to understand what it is and how it will work? RBI will regulate this digital currency.

Now people’s dependence on cash will be reduced through digital currency. Till now the transaction is done through currency, rupee or check or through any banking system. But no hard currency will be required in digital notes. You will be able to do wallet to wallet transactions.

What is digital currency or e-rupee?

Digital currency is the electronic form of physical currency. Which will be used for retail transactions. According to RBI, this e-rupee or digital currency is legally recognized. These currencies are recognized by the Central Bank Digital Currency (CBDT), RBI. You will be able to use it in place of physical currency.

Digital currency launched in 4 cities
Digital currency launched in 4 cities

How to use Digital Currency or E-Rupee?

The value of digital currency is equivalent to the value of physical currency. You can use E-Rupee to transact PERSON TO PERSON (P2P) or PERSON TO MERCHANT through digital wallets. E-Rupee will also be available for use with digital wallets, mobile phones, and other electronic devices to make online payments. All the services, including making loan payments, etc., that are available with cash or real money will also be available with E-Rupee. You won’t receive interest for keeping it in a deposit as you would on a bank account, though.

Digital currency launched in 4 cities

Who can use E-Rupee?

Regarding who can use digital currency, RBI has said that as a pilot project, some selected customers and merchants are currently involved, it has been launched in the first phase in collaboration with 4 banks in 4 cities. In the second phase, Union Bank, HDFC Bank, Baroda Bank and Kotak Mahindra Bank, HSBC Bank along with other 9 Citys will be launched.

Digital currency launched in 4 cities

What is the difference between E-Rupee and UPI ?

Although UPI has a transfer limit, you can send more money than with digital currency within that limit. The issue of security, however, will also be very important. so that it is not misused. as would be the case with sending money to the incorrect number. Additionally, the RBI will verify its details.

While you use UPI, the bank handles every transaction you make or, to put it another way, they are informed of it. However, when using e-Rupee, transactions may only be made from one person or business to another.

Digital currency launched in 4 cities

Digital currency launched in 4 cities

The facility for the digital rupee will be implemented gradually, according to RBI. Currently a pilot project, it will begin with Delhi, Mumbai, Bengaluru, and Bhubaneswar in the first phase. Following this, Ahmedabad, Gangtok, Indore, Kochi, Lucknow, Patna, Shimla, Guwahati, and Hyderabad will all introduce E-Rupee in the second phase. This pilot programme from the RBI will include eight banks from all over the nation. State Bank of India (SBI), ICICI Bank, Yes Bank, and IDFC Bank will be included in this program’s first phase in these banks. In the second phase, this pilot programme will welcome Bank of Baroda, Union Bank of India, HDFC Bank, and Kotak Mahindra.

Digital currency launched in 4 cities

advantages of E-RUPEE

  • Small businesses can get assistance from e-RUPI to benefit from government programmes.
  • Beneficiaries’ personal information will be completely confidential to E-Rupee.
  • The beneficiary does not require a mobile app, card, internet banking, or bank account in order to use its service.
  • Since e-RUPI is a Prepaid Voucher, real-time payments to the service provider are guaranteed.
  • As a result, it can be used by people without smartphones or in places with poor internet connectivity.

Digital currency launched in 4 cities

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