RBI Digital Rupee: Digital currency ie Virtual Currency (Digital Rupee) is being started in the country. The Reserve Bank is launching its digital currency today i.e. on November 1, 2022. It is also known as Central Bank Digital Currency (CBDC).
Initially, about 9 banks of government and private sector have been linked in this project. However, it has been started as a pilot project now. Now it will be used in wholesale transactions. Its retail use can also be done within 1 month.
The question arises as to how it can be used. In this regard, the Reserve Bank has given some information on its website.
Based on Blockchain Technology
The digital form will be based on blockchain technology. It will be used in the same way as cryptocurrency is used. According to RBI, this will be the mode of payment, which will be issued as a legal tender for all citizens, business, government and others. Its value will be equal to the legal tender note (current currency) of the safe store. With the introduction of RBI’s digital currency (E-Rupee) in the country, the need to keep cash with you will reduce. It will be safe if regulated by RBI. CBDC will be the digital token of the country.
These 9 banks have been selected
The Reserve Bank has selected a total of 9 banks for digital currency to be used for large transactions from November 1. These banks include State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank and HSBC. After the success of this project, more banks will also be added to it.
Where it can be used now
From November 1, Digital Rupee will be used for wholesale transactions. According to the Reserve Bank, it will be used for the purchase and sale of government securities. But within a month, it will also be used for retail transactions.
You can also buy everyday things
There are 2 forms of Digital Rupee. First for retail (CBDC-R) and second for wholesale (CBDC-W) use. Retail CBDC will be open to all consumers i.e. private sector, non-financial consumers and business. Whereas Wholesale CBDC will be for Selected Financial Institutions. Retail CBDC is the electronic version of the retail transaction itself. People will be able to use it for everyday transactions.
How To Use
You will be able to keep E-Rupee in your mobile wallet. Apart from this, users will also be able to easily convert it into bank money and cash. You can use this digital form to make payment to anyone. CBDC will be reflected in the account in electronic form and can also be exchanged with currency notes. Just like we check our bank account balance online or check mobile wallet, we will be able to use E-Rupee in the same way. Digital Rupee is also preparing to be linked with UPI.
With the introduction of digital currency, the cost of transactions for common people and business with the government will come down. However, with the introduction of this digital currency, there will be no change in the existing transaction system of the country. With this people will be able to transact with other important wallets like Paytm, PhonePe.