Kathmandu, Dec 1. The Reserve Bank of India (RBI) is launching the pilot project of retail digital rupee (e-rupee) today, i.e. on 1 December. In the pilot project, the entire process of digital rupee creation, distribution and retail use will be closely examined. Changes will be made in the retail digital rupee on the learnings from this test, then it will be released for everyone to use.
RBI said that the pilot will have a closed group of customers and merchants covering select locations. E-Rupee will be distributed through banks. Users will be able to keep it in digital wallets in mobile phones and devices. With digital wallet – Person-to-person or person-to-merchant transactions will be done. Merchant can also be paid through QR code.
There are many questions in people’s mind regarding e-Rupee that how will it be? How will this work? Apart from this, there is also a question in the mind of many people that how is it different from UPI? We have come up with answers to your similar questions….
e₹ is a digital form of currency based on blockchain technology. It is of two types – CBDC Wholesale and CBDC Retail. Its value will also be equal to the current currency. This will also be accepted like physical currency. e₹ can be kept in the mobile wallet. There will be no need for a bank account to keep it.
On November 1, the RBI launched the pilot of wholesale e-Rupee. These are only for large financial institutions including banks, large non-banking finance companies and other large transactional institutions. For this SBI, BOB, Union Bank, HDFC, ICICI, Kotak Mahindra Bank, Yes Bank, IDFC First Bank and HSBC were selected. CBDC Retail is launching today.