Reserve Bank OF India Announces Digital Rupee or E Rupee to launch on December 1st
A form of a Digital Token called as Digital Rupee or E-Rupee can stands in for real cash. The digital Rupee is issued in the same denominations as coins and paper currency unlike the cryptocurrencies.
On Tuesday, the Reserve Bank OF India reported that the launch of Digital Rupee or E-Rupee first retail pilot on December 1. To start RBI has collaborated with State Bank of India, Yes Bank, ICICI Bank and IDFC First Bank in New Delhi, Bangalore, Mumbai and Bhubaneswar at the beginning, the pilot will cover only the Close User Group (CUG) with participating customers and businesses, RBI said.
According to RBI, unlike crypto, the Digital Rupee or E-Rupee is a type of Digital Token that subtitles legal money, Digital currency is issued with the same values as coins and paper currency
How to Use Digital Rupee?
According to the RBI said the Digital Rupee will be shared over go between like banks and commercials can make transact through Digital Wallet’s E-Rupee performed by the acceptable banks and commercial on electronic devices like Mobile phones.
As with online transactions, users using QR codes at merchant locations can make transactions through e-Rupee. The central bank has confirmed that digital rupee transactions can be done from person to merchant or person to person very safely.
A-Rupee offers features like the trust, security and end of settlements of real money. It can be converted into other forms of interest, such as bank deposits, but it does not pay like cash, an RBI official said.
According to the RBI, the pilot will assess “the robustness of the entire process of creating, distributing and using digital rupees at retail in real time”. Future pilots will explore other aspects and uses of the e-Rupee token and architecture based on lessons learned from this pilot.
List of cities and banks that qualify?
According to the central bank, the introduction of digital rupee will be done in a phased manner. The pilot will initially begin with four banks in four locations for the first phase: State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank.
These cities include Mumbai, New Delhi, Bangalore and Bhubaneswar. The pilot will now include four additional institutions including Bank of Baroda, Union Bank of India, HDFC Bank and Kotak Mahindra Bank, the RBI said.
The service will eventually be extended to a large number of additional Indian cities including Ahmedabad, Gangtok, Guwahati, Hyderabad, Indore, Kochi, Lucknow, Patna and Shimla. The facility will eventually expand to other parts of the country.
An official rollout timeline has not yet been made public. According to the RBI, “the scope of the pilot may be gradually expanded to include other banks, consumers and required locations.”
Since a long time ago, RBI discussed the implementation of digital rupee and by December 1, some consumers will be able to transact using e-rupee. The central bank’s overarching goal with the digital rupee is to conduct a full-scale launch of a CBDC (Central Bank Digital Currency) in the not-too-distant future.