Two days ago, one of India's businessman tweeted about the use of e-rupee. Anand Mahindra, made the e-rupee transaction to buy fresh fruits from local vendor. He then shared it over the social media platform to create awareness among Indians.
screengrab from tweet video
He said, he learned about the digital currency, in the Reserve Bank of India board meeting and he went ahead to test it out to local vendor. Refer the Tweet link
By the looks of it, it appears to be another form of UPI payment system. Just scan the bar code and the money will transfer into another bank account. However there are a huge difference.
India launch the pilot phase of its own digital currency "e-rupee" on 01-Dec-2022. It is currently denoted by :
- 'e-R'
- 'e-Rupee'
- 'e-INR'
It is actually a digital token representing the legal tender in India. While it may look like an ordinary UPI payments, but it's a whole lot different process behind the scene.
UPI is a digital #payment system that fascilitates banking transaction. But an "e - rupee" is infact a currency in digital form.
E rupee is operated by the Reserve bank of India, and move from sender wallet to receiver wallet. There are no routing or intermedition of the banks. On the other hand UPI transaction are backed by the physical cash that linked to your bank account.
In e rupee the transaction can be between person to person or from person to merchants. For which there will be QR codes at the merchant location. These digital token can be withdrawn by banks in the same way as we withdraw physical cash. The transaction are done through digital wallets. For the time being,the services is being offered by following banks :
- State Bank of India.
- ICICI Bank
- Yes Bank
- IDFC First Bank
Digital rupee will help in cross border payment. Reduces operational costs, reduce managing physical cash. And since the Central Bank Digital Currency is trackable, the process is transparent and cannot be forged. Thereby, putting an end to money laundering and terror funding. Hopefully this will paved way for more digital currency acceptance in India.
Let's move ahead with digital India. And see how the e-rupee bring changes in Indian society and economy.
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