The Reserve Bank of India has launched the Digital Rupee Pilot batch for the retail users on 1st December 2022.
CBDC expanded as Central Bank Digital Currency, will be launched for the retail users by RBI on 1st December 2022. It is the pilot batch of the digital currency which shall be distributed among the retail users like us. There are a total of eight banks which have been identified as fit for the pilot or trial phase of digital currency. If your bank is on the list, you can expect an invitation from your bank soon.
The end consumers can put this currency in their digital wallets which can be accessible on their mobile phones or other devices. The currency will be in the same denomination as in the paper notes and metal coins in the country. Users will be able to make their transactions using this wallet digitally.
How and Where to Use the Digital Currency?
To use the digital currency, you must be a part of the digital currency ecosystem which would be the Digital Rupee Wallet. It is where the user will be able to keep or transact the digital currency.
If you would want to transfer or receive money, then you would require a Digital Rupee QR Code.
CBDC is a legal tender for all businesses, citizens, government and others so the banks will debit your account only once when you purchase the Digital Currency. All the following transactions will be transferred directly from the wallet to the other wallet. It will be much safer and practical than hard cash.
Once the Digital Currency is introduced properly among people, there would be no need to carry cash in the pocket.
What are the Benefits of E-Rupee/Digital Currency?
There are multiple benefits of supporting and using E-Rupee or Digital Currency launched by the Reserve Bank of India and here is the list of the top ones:
- It will boost the digital economy.
- It will process the payment like a mobile wallet.
- Users can convert the digital rupee into bank money or cash in seconds.
- Sending money overseas will become cheaper.
- E-Rupee will function without an internet connection.
- E-Rupee will always be equivalent to current money.
Will the client receive any interest in the Digital Rupee?
One major question among the users is if the client receives any interest on the Digital Rupee. To answer this question, no, there won’t be any interest earned on the balance maintained in the Digital Wallet.
As there would never be any interest on the hard cash, there can’t be any interest on the Digital Rupee. It would be more like you would be keeping your money in your mobile phone.
How will the Digital Rupee benefit the financial system?
Digital Rupee shall promote financial inclusion as well reduce the cost incurred on creating hard cash which includes paper notes and metal coins. With time, CBDC is expected to be used without any underlying bank account. So, you would be able to use it just like you would use your physical cash.