Currently, the central bank digital currency (CBDC) or the eRupee cannot be converted into cash or vice versa. The Reserve Bank of India will only issue eRupees against bank deposits (RBI). Accoring to a Times of India report, Anuj Ranjan, the chief general manager of the RBI’s fintech department, stated at an event at the Indian Merchants’ Chamber that the pilot project has progressed quite satisfactorily in a closed-user group and that the number of users is gradually increasing.
Ranjan stated that because the eRupee is part of the RBI’s liabilities, the apex bank will bear the costs associated with it.
Yes Bank, for example, has already made the digital wallet available for download on the Apple App Store and the Google Play Store. Several companies, including Reliance Retail, Natural Ice Cream, and oil marketing firms, have also agreed to accept eRupee payments.
The eRupee is a digital representation of a central bank’s currency notes. According to the RBI, the motivations for issuing CBDC vary by country. The digital Rupee, or e-R, will be legal tender, with the same denominations as paper currency and coins. It will be distributed via intermediaries like banks.
Users will conduct transactions using a digital wallet that can be stored on mobile phones and devices. Transactions between people and merchants will be possible, and QR codes can also be used for merchant payments. The pilot started with four banks: State Bank of India, ICICI Bank, Yes Bank, and IDFC First Bank. The pilot was initially launched in Mumbai, New Delhi, Bengaluru, and Bhubaneswar.
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