E-rupee Digital currency in India replace paper money?

In the last five years, the country has made more progress in digital payment than any other country in the world. Africa, China, and European countries are not even close to India in terms of making digital payments. Given this immense success of Digital Payment, the Government has brought new technology. This technology is such that the hassle of cash notes in the country will end. Now, neither the message will be dirty, nor will it tear, nor will it be stolen, nor will black money transactions happen in the country.

There will be no black money in the country but only white cash. That technology is Digital Rupee, i.e., E-Rupee.

E-Rupee does not mean Digital Transactions. Because of the Digital Transaction we now do with our phones. It is only for Digital transactions. But E-Rupee is a different currency. Through this article, you will be told what E-Rupee is. When was it launched in India? How it will change the economy of the whole country. After all, how will Digital Rupee be, and how will it reach us? You will find answers to all these questions in this article.

What is E-Rupee?

Reserve Bank has launched E-Rupee. The currency notes we use now. This will work in its place. Whenever we buy something, paper notes are given, but now the need for this will also end. Its place will now be Digital Currency Payment. This means we will get freedom from the hassle of keeping notes or coins. There will be no need to go to the Bank’s ATM to withdraw money.

  But now we also get this facility from Phone Pay, Google Pe, Paytm, etc. Then why is it needed?

E-Rupee will indeed do the same thing. The work that we do with UPI Payment. UPI Payment is already cashless, like E-Rupee. Apart from this, we will only pay for the product or service. Then what would be the reason for using E-Rupee?

You must have believed that not every payment can be done through UPI. There are many such payments where you do not want to leave any record. Many transactions are private. And you do not want anyone else to know about them, but this does not happen in UPI, there is a record of payment. The complete form remains in Bank Statement.

You must have found many people who do not want payment from Card or UPI. They only need currency notes. Similarly, we pay in cash because of our privacy. So keeping these requirements in mind, the Reserve Bank has launched E-Rupee. Its use will be online only, but privacy will be the same as in currency notes. It means the Government or any bank will not know where E-Rupee came to you and where it went. And no account will be kept of how many E-Rupee you have. Overall, there will be no E-Rupee Track.

How will E-Rupee be used?

Like we use Wallets, Purse, etc., to keep our money. Similarly, Central Bank Currency Wallet will be needed. E-Rupee will be stored in this WalletWallet. When you request the Bank, instead of giving cash, they will put E-Rupee in your Wallet. Central Bank Digital Currency E-Rupee will be kept in the same way as real notes are kept in your pocket. Like you have ₹ 1200 in your pocket. So its notes will be two 500 and one note of 200. Similarly, there will be two E-Rupee 500 and one E-Rupee 200 in the Wallet.

You will be able to easily download and uninstall the Mobile App of this CBDC Wallet. Only your Bank will provide this App. This App will be installed on both iPhone and Android Phones. However, initially, the registration in this App will be of only those people whom the Bank will permit. Right now, this registration is not open to all.

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What is the limitation of holding an E-Rupee?

There is some limitation of this WalletWallet keeping E-Rupee. Like you cannot keep an E-Rupee of more than two lakhs in it. And apart from this, more than 30 Transactions cannot be done in 1 day. You can also use E-Rupee to buy goods. To buy goods, QR Code will have to be done in the same way as you do for UPI Payment. As soon as the payment is made, E-Rupee will be released from your WalletWallet and will go to the Merchant’s Wallet. The good thing is that you can also exchange normal currency notes instead of E-Rupee. Will give inconvenience to the Bank. Apart from this, merchants can also provide facilities.

Where to get E-Rupee initially?

E-Rupee will meet with banks. Banks can also give an E-Rupee instead of normal currency to their customers. E-Rupee will be provided upon your request.

How will E-Rupee come to us?

This is a Digital Currency. Meaning we cannot touch it. It will remain in a special CBDC Wallet. Like the shares of a company are kept in the demat account. Similarly, CBDC Wallet will be an E-Rupee of different values.

The digital currency of what value will be received?

Like Physical Currency, you can also choose the value of the E-Rupee.

It can be 2000, 500, 200, 100, 50, 20, and 10 rupees.

Where can I use E-Rupee?

Wherever payment is required, E-Rupee can be used there. Like if you want to send money to someone, you can send E-Rupee. If you buy something from a shopkeeper, you can use it as payment.

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Will there be interest in E-Rupee?

Like keeping physical currency does not earn any interest. In the same way, no interest will be earned on keeping Digital Currency.

No interest of any kind will be given in Digital Currency. And it can be easily deposited in your bank account, equal to the other Indian rupee. RBI will implement it in the whole country with further changes only after learning from the first pilot project.

Will E-Rupee be available everywhere?

The Reserve Bank is running a pilot project for E-Rupee, which means the trial is going on. That’s why it will not be available in the whole country. Right now, the first phase has started in Delhi, Mumbai, Bengaluru, and Bhubaneshwar. After this, in its second phase, it will be created in Ahmedabad, Gangtok, Guwahati, Hyderabad, Indore, Kochi, Lucknow, Shimla, and Patna.

From which banks will get E-Rupee?

Right now, only a few selected banks are given this digital currency. SBI Bank, ICICI Bank, Yes Bank, and IDFC Bank will provide E-Rupee in the first phase. And in the second phase, the Bank of Baroda, Union Bank, HDFC Bank, and Kotak Mahindra Bank will be involved in this pilot project.

Where to get Digital Wallet for E-Rupee?

Now banks themselves will provide WalletWallet to store E-Rupee. Later this WalletWallet can also be integrated with Bank’s own Mobile App.

What will be the technology of the E-Rupee?

Reserve Bank will use blockchain technology for digital currency. Due to this technology, E-Rupee cannot be tracked to an extent.

What is digital currency?

Digital Electronic Version of Cash It will be in the form of a Digital Token. Digital currency will be created the same way RBI Bank prints notes. There will be an electronic version of money that cannot be touched, which will be only in your mobile or your account. You will be able to use it in transactions. The value of Digital Currencies is the same as Paper Currency or Coin Currency.

How many types of E-Rupee Currency are there?

There are two types of E-Rupee Currency. 1. Retail, 2. Wholesale.

Common people can do retail transactions. If we have bought goods from a shop and have to give money to him, then we can use digital currency, then he will not need to provide us with paper notes. We will directly give him digital currency. It will be used for small transactions.

Wholesale It is used for big companies and factories etc. Because their transaction is very high so it is for them.

On 1 November 2022, the central Bank launched Digital Rupee for Wholesale Transaction. But now, the Central Bank is launching this Digital Currency (CBDC) for retail use. According to RBI, during the pilot project of Digital Rupee for Retail, the whole process of its distribution and service will be tested. It will be initially rolled out at select locations.

What are the benefits of E-Rupee Currency?

• E-Rupee will help strengthen the economy.
• It will get rid of the hassle of keeping cash in your pocket.
• It is like UPI; you will get the facility to make payments.
• Can easily convert E-Rupee into bank money and cash.
• There will be a reduction in the cost of sending money abroad.
• E-Rupee will work even without the internet.
• The currency we have now will be equal to its value.

Will the Digital Rupee Hit Black Money Too?

Any Transaction done through Digital Currency will be in the eyes of the Government. No person will be able to hide the Transaction of Digital Currency. In such a situation, transparency will increase, and black money will be stopped.

How will the transaction through the digital rupee be easy?

Today, it takes some time for money to reach from one place to another on transactions like NEFT or RTGS. But on sending money through digital currency, the person who wants to get the money will get it immediately.

Difference between UPI Payment and E-Rupee

The site of Bank Bazar Dot Com is called Adil Shetty. However, the transaction of the payment you make through UPI may be digital, but that transaction or settlement between banks is done in cash only. For example, you are a customer of a bank and if you make a payment to a customer of another bank through UPI, then your Bank will send that much money in the form of cash to that other Bank. At the same time, the method of transaction in Digital Rupee is slightly different from this. In this, we can make payments through digital notes issued by RBI. This transaction will be the same as if you have paid in cash to someone.

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