What about e-Rupee? Indian Digital Rupees

What's new in Currency in digital form of E-Rupee.

• An alternative to the use of physical currency.

• Store in mobile wallets

• Security milk is high

• Not a substitute for UPI

Murali krishna was to go Pune in Pune Express train. When he heard that the train was leaving, he boarded the train at Secunderabad station. As it is a festival, there is a lot of traffic. However, somehow he pushed and sat on the train. When he put his hand in his pocket, he could not find the purse. Suddenly the face changed. Along with the wallet cards, there was Rs.5,000 cash drawn. If this currency is not in the form of notes, but in the mobile wallet..? It can't happen like this..! Central Bank Digital Currency (CBDC / e-Rupee) has come as an alternative to physical currency. Some people are confused about this. How does it work, how to make payments, if UPI is required? So many doubts. This article is an attempt to clarify them.

What is E-Rupee ?..

It is a digital form of currency note. That is why the RBI has always required currency notes which it named as Central Bank Digital Currency (CBDC). It releases into the system according to the conditions. As well as same as currency note it will also release a digital currency in the same manner. As part of the Liquidity activities, there will be integration between physical and digital rupees. Irrespective of the form of currency, the liability to this extent is shown in the balance sheet of RGI. 

This digital currency are Stores in wallets application's of Mobile phones. It also has a legal status just like a currency note. The digital currency can be kept in the form of rupees for as long as desired. All the rules that apply to physical currency also apply to digital currency. The difference is only in form. So it can be exchanged like a currency in the future by all city's by citizen's.

How to use..?

If there is a balance in the bank account, it can be converted into digital rupees as much as desired. An Android mobile phone is required for this. Currently RBI is piloting and monitoring this Rupee Retail (Individuals) project.

• SBI (State Bank of India) 
• ICICI Bank
• IDFC First Bank
• Yes Bank are offering digital rupee wallets. 

An iOS based app has not yet been developed at this time but RBI is planning for it. If the customers of these banks are using an Android phone, the link will be sent to their phone in the form of SMS and e-mail. Those who are interested can open the link and download this - Rupee Wallet. The phone number registered with the bank should be used.

Pilot Project 

Effective from December 1, retail CBDC  E-Rupee has been restricted to a few people in Mumbai, Delhi, Bangalore and Bhubaneswar. It will be implemented on a full scale only after solving the problems identified as part of the pilot project. Nesha along with RBI is responsible for enabling e-rupee transactions under the pilot project.

Few people..

Null Payments Corporation (NPCI) is looking. NPCI will resolve any issues related to these transactions. Banks have selected some of the customers who frequently use mobile banking and those who make digital payments for experimental tests. This rupee wallet link will be sent to the phones of those selected. If you do not get any number or URL link from the bank, if you are interested in this rupee wallet, you can contact the bank manager. They have the discretion to accept or reject the request.

How does it work..?

Those who have downloaded the e-Rupee Wallet app, need to transfer the money from their bank account to the wallet. The customer is free to decide how many they want in any denomination. That means the customer can load the wallet as per his wish in denominations of rupees, 2 ₹, 5 ₹, 10 ₹, 20 ₹, 50 ₹, 100 ₹, 200 ₹, 500 ₹. For example, suppose you transfer Rs.5,000 ₹ from a bank account. Then 5 e-rupees in denomination of Rs.500 ₹, 5 e-rupee in denomination of Rs.200 ₹, 10 e-rupee in denomination of Rs.100 ₹, 50 e-rupee. 8 e-rupee can be selected as Rs.20 ₹, 10 ₹, 5 ₹, 1₹ for the remaining value of Rs.100 ₹. It is not like this. If the customer wants, they can also take 100 rupees in the denomination of Rs.50 ₹. Or 5,000 e-rupee s can be taken in rupee denomination. They work like physical currency. Just like we have notes in our wallet, we have these rupees in our wallet. These rupees equivalent to all denominations physically in use are available in the wallet.

Immediate Transfer...

Person-to-person and person-to-merchant payments can be made between Rs. In order to transfer SilikiCs between people, it is mandatory for the other person to have this form of wallet. It can be done through QR code scan mode if you want to pay e-rupee to merchants. It works as a payment gateway as same as UPI. Currently UPI. These rupee 'payments' are also as easy as making payments through E-rupee transfer is done instantly like UPI. This rupee you send it will reach the other person's wallet within seconds.

Pros/cons

In the case of currency notes, there is a possibility of introduction of counterfeits. Digital currency does not have that problem. Even if the mobile phone is lost, it is bad

No worries, you can call the customer care number of the bank and transfer the money in the wallet. UPI is linked to a bank account. So if the phone with UPI app is lost, the risk of misuse is high. With e-Rupee Wallet there is no such risk. Every transaction is tokenised , unique and secure. Token will not be issued if there is problem in internet connectivity. Since the transaction is done instantly, the chances of failure are low and the use of CBDC increases, saving the RBI huge costs. Because the cost of printing currency notes will be reduced. Moreover, banks are financial institutions Costs of handling physical currency will be reduced. Between them the costs of internal payments are reduced. The economy will become more digital. This will increase official financial activities and transactions. Suitable for inter-country payments. Once it becomes available to all, there will be more clarity on its distribution, accessibility, convenience and issues.

No interest..

There are many differences between the UPI system and this Rs. UPI is transfer of money from our bank account to another person's bank account through UPI. Transferring, however, is not the case with e-Rupee. This e-rupee can be transferred from one person's wallet to another person's wallet. Usually a bank savings account earns quite a bit of interest on the daily balance. But, there is no interest income on these rupees in the wallet. Because it does not come under bank balance. Realise that physical currency is the same as what we have in our physical wallets. The balance in this e-rupee wallet can be transferred back to the bank account. Since then the interest income will come.

Where is the consumption?

If this rupee becomes fully operational, it can be used anywhere in the country just like UPI. At present it is limited to transactions between individuals and traders within a close held in a group. We withdraw cash from the ATM and make payments where necessary. Similarly e-Rupee can be loaded into wallets and payments can be transferred wherever required.

Two types

CBDC is classified into two types. 

1) Wholesale type 

2) Retail type 

Wholesale type : Private sector and business organisations can use it. Wholesale CBDC is currently restricted to use only between banks and financial institutions. Wholesale CBDC is meant for settlement of transactions between two banks and financial institutions.

Retail type : Retail CBDC is meant for person-to-person and person-to-dealer transactions. It means a person can send money any other person as same as UPI like Paytm, GPay, PhonPay.

An additional tool

CBDC is not a substitute for any other existing instrument. As an additional means of payment, it is only a digital form of currency. Ease of use, cost reduction, security and protection are many aspects associated with digital rupee.

UPI vs E-rupee 

With the arrival of this e-rupee, there are some doubts about UPI. But, these two different tools, there are 26 crore UPI users in the country. 730 crore UPI transactions (worth Rs 12:11 lakh crore) were recorded for the month of October. Digital Rupee developed by National Payments Corporation (NPCI) is completely different. Banks have a role in managing UPI transactions. Banks have no role in e-rupee digital currency transactions. It should be understood that whatever the role of the other is in the exchange of currency between two people, it is the same in digital rupees. UPI transactions can be tracked. However, no one else can track CBDC transactions that take place privately between two individuals or two parties. are confidential.

UPI facility in terms of payments?

Anyone else, however, sees ease of use. How convenient are UPI payments compared to CBDC, for example they bought items worth Rs.100 ₹ Then payments should be made. Through UPI, just scan the QR code and enter the PIN. Rs. 100 ₹ Payment is completed. And e-rupee is not like that. It should be decided in which denomination the Rs.100 should be paid. Rs.20 Denomination Regards. do Or Rs.10 denomination four then Rs.5 denomination, or in Rs.2 Denomination. Nations should be selected and transferred. Otherwise 100 e-rupee should be selected in rupee denomination. Payments are possible only if the wallet has an e-rupees in all transactions. Apart from that, if these rupees are only in the denomination of Rs. 10, 20, 50 in the wallet, then Rs. 101 Payment not possible. If the system of denomination is settled and transfer is developed suitable for automatic payment, it will be eliminated. Then it can be an alternative to UPI. However, Retail comes first in UPI and reached all parts of the country. It does not know much about technology. You don't want to go to the bank account and load it.. - That's why critics are saying that UPI will continue in the payments and that the settlement of payments between the banks and the institutions and the CBDP is suitable for the trade of e-rupees with foreign countries.