Currently, eRupee or CBDC or Central Bank Digital Currency cannot be cashed at the banks or by any other financial institutes. Bearers can only get the eRupee issued by the Reserve Bank of India if they consider bank deposits. The deposit process will enable the conversion of digital money into hard money.
What Experts Have to Say About the Digital Rupee Conversion?
Senior General Manager of the Fintech division of RBI, Anuj Ranjan stated that “the pilot project has moved pretty nicely in a closed-user group and that the number of users is gradually increasing when speaking at an event at the Indian Merchants’ Chamber. Ranjan stated that as eRupee is a liability of the RBI, the central bank will be responsible for its costs.”
Digital Wallet for Digital Rupee Available At Play Store
Presently, the digital wallet application is available for both iOS and Android platforms via Apple App Store and Google Play Store, after collaborating with lenders like Yes Bank. Several major large corporations have agreed to make business transactions in eRupee including Reliance Retail, Natural Ice Cream, and oil marketing firms…
The Central Bank issued the eRupee in the digital form, as per which, “each country’s reasons for issuing CBDC are varied. The e-R, also known as the digital rupee, would be accepted as legal cash and come in the same denominations as coins and paper money. It will be delivered utilizing middlemen like banks,” mentioned zeenews India.
The transactions can be executed through the digital wallet, which users can download and install through dedicated app stores. Just like UPI, eRupee will be transferred between consumers and merchants and retailers through QR codes and unique IDs.
Four major banks- State Bank of India, ICICI Bank, Yes Bank, and IDFC First Bank, have participated in the first digital rupee pilot conducted by RBI, launched in Mumbai, New Delhi, Bengaluru, and Bhubaneswar.