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India's much awaited Digital Rupee (e-Rupee) is set to begin retail testing tomorrow. Transactions of e-rupee will take place in a closed group consisting of users and merchants selected on a test basis. A common man will have a hundred questions in his mind when he hears that e-Rupee is available in the morning. Some of these are answered by the RBI itself. Let's take a look at some common questions and their answers.
What is E-Rupee? What is the difference with current currency?
E-Rupee is the digital version of current currency. It cannot be seen or touched like normal currency. These can only be stored in e-wallets that store digital currency. Instead of currencies, tokens will be used here. Tokens will have the same value as currency.
How is E-Rupee a Crypto Currency?
Blockchain technology, which is used for the creation of cryptocurrencies, is also used for the creation of the e-rupee. That's why it is called the crypto currency of India.
How and where to use Digital Rupee?
E-Rupee transactions are similar to UPI transactions. UPI transactions require UPI ID and QR. Here money is transferred from your account to account. But e-rupee transactions require e-rupee wallet. In short, clients should be part of a digital currency ecosystem like a digital rupee wallet. A digital rupee QR code is required to transfer money to a merchant.
Core banking only for adding money
You can only use the banking feature to add money to your digital rupee wallet. Then there will be no connection with the banks. Transactions will be through digital rupee wallets. Control RBI. It is safer and more practical than cash.
What are the benefits of e-rupee/ digital currency?
- Useful for boosting the digital economy.
- It will have the ability to process payments like a mobile wallet.
- Digital Rupees can be quickly converted into currency.
- The cost of sending money abroad will be reduced.
- The latest report claims that e-Rupee can work even without an internet connection. Currently UPI and wallet transactions require internet.
- Money will have the same value.
Does digital rupee earn interest?
Digital Rupees stored in e-Rupee Wallet do not earn interest. Money stored in digital wallet does not currently earn any interest? Those who aim for interest will have to keep the money in the bank itself.
Retail Pilot- Phase 1 What ?
Phase I, which will begin on December 1, 2022, will cover 4 banks and 4 cities. SBI, ICICI Bank, Yes Bank and IDFC banks are in the first phase. The cities will be Mumbai, New Delhi, Bangalore, Bhubaneswar etc.
Retail Pilot – Phase II What?
Cities including Kochi are included in the second phase. Other cities are Ahmedabad, Gangtok, Guwahati, Hyderabad, Indore, Lucknow, Patna and Shimla. Union Bank of India, HDFC Bank, Kotak Mahindra Bank and Bank of Baroda will also participate in the second phase.
