RBI is soon bringing ‘e-rupee’, know how the country’s first digital currency will work

Amidst the digital revolution in the country, now the money kept in your pocket is also going to be digital soon. The Reserve Bank of India is soon going to launch the country’s first digital currency ‘E-rupee’. According to the Reserve Bank, in this pilot project, e-rupee will be used only for special situations. Along with this, the Reserve Bank has also issued a concept note on Central Bank Digital Currency. The purpose of this note is to spread awareness among the people about the digital currency and especially about the features of the digital rupee.

The Reserve Bank of India (RBI) on Friday said that it will soon offer the e-rupee for specific use on a pilot basis. The central bank is testing a digital currency in India. The RBI in a concept note on ‘Central Bank Digital Currency’ (CBDC) said, “With the expansion of the range and scope of such offerings on pilot basis, the specific features of e-rupee from time to time.” More information will be given about the benefits.

The concept note also discusses key issues such as technology and design options for digital currency, possible uses of digital currency, and issuance mechanism of digital currency. It examines the implications of the introduction of CBDCs on the banking system, monetary policy and financial stability. In addition, privacy issues have also been analyzed.

Prime Minister Narendra Modi on 2 August 2021 launched e-Rupee as a new tool for cashless and contactless payments. Actually e-Rupee is basically a digital voucher, which is received by a beneficiary in the form of SMS or QR code on his phone. For example, if the government wants to bear the cost of special treatment of one of its employees in a particular hospital, then it can issue e-rupee vouchers for the prescribed amount through a partner bank.

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