Retail Digital Rupee (CBDC or e-Rupee ) launched today

 

RBI had announced that Retail Digitally Rupee will be launched from 01^st December 2022 on pilot basis. The bank has finally launched the currency known as e-₹R (e Rupee) today. The Central Bank Digital Currency (CBDC) is expected to outscore the present methods of retail transactions. The highlights of the electronic currency and details of pilot phase are as follows-

        1.  It is an electronic version of currency which we normally use for cash transactions.

  2. It is exchanged for transactions instead of currency and it will have same denominations in paper/coin currency.

   3. The e₹-R would be in the form of a digital token that represents legal tender.

  4. The e₹-R would offer features of physical cash like trust, safety and settlement finality. As in the case of cash, it will not earn any interest and can be converted to other forms of money, like deposits with banks. 

During the test phase, the customers of selected banks/cities can use the digital currency. The first phase of launching this e-rupee will begin with four banks, viz., State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank in four cities across the country. The pilot launch would initially cover four cities, viz., Mumbai, New Delhi, Bengaluru and Bhubaneswar and later extend to Ahmedabad, Gangtok, Guwahati, Hyderabad, Indore, Kochi, Lucknow, Patna and Shimla. Four more banks, viz., Bank of Baroda, Union Bank of India, HDFC Bank and Kotak Mahindra Bank will join this pilot subsequently. 

The introduction of e-R is expected to boost the digital transactions and to speed up the journey to becoming a digital economy. General public would convert the physical cash in their hand into the digital form in future for ease of transactions. Just like how digital wallets/payment services in android devices conquered the hearts of people during the past 6-7 years, we could hope that e-Rupee would turnout to be a common mode of retail transactions in near future.