To promote digital payments in the country, the Reserve Bank of India (RBI) has taken various steps in collaboration with the government. Last year, the RBI introduced E-Rupee, a form of digital currency designed to facilitate easy payments. This initiative aims to contribute to the vision of a cashless India. Let’s delve into the details of E-Rupee.
New Delhi, Business Desk: Digital Currency – The Reserve Bank of India (RBI) issued digital rupees using blockchain technology. E-Rupee was launched in India in 2022 and has completed a year since its inception. E-Rupee can be used for both retail and wholesale transactions.
Performance of E-Rupee: As per the RBI’s annual report, E-Rupee has shown commendable performance. Several banks in the country have incentivized E-Rupee with reward points and various offers. Through the UPI platform, the RBI has enabled daily transactions of 10 lakh rupees for Central Bank Digital Currency (CBDC).
E-Rupee User Base Growth: The pilot program for E-Rupee has witnessed a rapid increase in the number of users of CBDC wallets among banks. According to reports, nearly 13 lakh users have downloaded CBDC wallets by June 2023, with 3 lakh merchants accepting E-Rupee.
What is E-Rupee? E-Rupee is a form of digital currency, a sovereign currency issued by the central bank, akin to physical notes in one’s wallet. Just as cash is used for in-person transactions, E-Rupee serves as a digital alternative for online payments.
Denominations of E-Rupee: E-Rupee is issued by the Reserve Bank of India and comes in denominations of 50 paise, 1 rupee coin, and 2, 5, 10, 20, 50, 100, 200, and 500 rupee notes. The E-Rupee tokens feature the RBI logo and the Governor’s signature, similar to physical currency.
How to Use E-Rupee: To use E-Rupee, one needs to download the Digital Rupee app on their phone, available on the Play Store or App Store. Upon logging in, users can access various bank-issued E-Rupee options within the app.
It’s important to note that E-Rupee is not universally available yet, and users need to register successfully on the app to utilize E-Rupee for transactions.
Advantages of E-Rupee: E-Rupee simplifies the transaction process, requiring no bank account for transactions. Additionally, it aids in saving costs related to cash management and printing. Furthermore, E-Rupee promotes overall financial inclusivity and transparency. It also contributes to curbing crimes such as money laundering.
In conclusion, E-Rupee represents a significant step towards realizing a digital economy in India, fostering financial efficiency and reducing reliance on physical currency.
