RBI said that we would make the digital rupee available in the same amount as paper money and coins.
The Reserve Bank of India (RBI) made a prominent announcement on Tuesday about the Digital Rupee. RBI has said that the retail digital rupee (e-R) will be released on December 1. Tell them that E-R will look like a digital token.
RBI has created a digital rupee pilot project for small businesses. RBI said they would make the digital rupee available in the same amount as paper money and coins. We know that digital currency will be a legal form of payment.
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The pilot project of Digital Currency
On December 1, the Retail Central Bank Digital Currency (CBDC) pilot project will begin. This pilot project will only include customers and merchants in the Closer User Group (CPU). Only a few places will get to try out this pilot project.
Using a digital wallet to make a purchase
We will make this digital rupee the same way paper money and coins are now. Banks will be the ones to give out this digital currency. Through digital wallets, customers can buy and sell digital rupees. Banks will offer this digital wallet, which can be kept on cell phones and other devices. Both Person to Person (P2P) and Person to Merchant (P2M) transactions are possible (P2M). Merchants have QR codes that can pay for things.
These banks will use the digital rupee.
The central bank says that we have chosen eight banks to join this pilot program in stages. In the first step, four banks—State Bank of India, ICICI Bank, Yes Bank, and IDFC First Bank—will be involved in four cities around the country. Bank of Baroda, Union Bank of India, HDFC Bank, and Kotak Mahindra Bank will join this pilot in the future.
E-Rupee was made because.
It won’t replace the existing digital Rupee but will give people another way to exchange money. RBI thinks that the e-Rupee will help the digital economy grow. It will help reach the goal of decreasing the cash economy. It will also help cut down on the costs of doing business. The payment system will work better.