November 30, 2022 (MLN): The Reserve Bank of India (RBI) is all set to launch the first pilot for retail digital Rupee or e-rupee on December 1, as reported by India Today.
To start with, the RBI has partnered with four banks including State Bank of India, ICICI Bank, Yes Bank, and IDFC First Bank in Mumbai, New Delhi, Bengaluru, and Bhubaneswar. Initially, RBI said, the pilot would cover only the closed user group (CUG) comprising participating customers and merchants.
The RBI explained that the digital Rupee or e-Rupee will be distributed through intermediaries like banks to customers and merchants. Users will be able to transact with e-Rupee through a digital wallet offered by the eligible banks and stored on mobile phones or devices, it added.
The central bank also confirmed that the transaction in digital Rupee can happen between Person to Person (P2P) and Person to Merchant (P2M). Users will be able to make payments through e-Rupee using QR codes displayed at merchant locations, just like online transactions are done, India Today further said.
“The e-Rupee would offer features of physical cash like trust, safety, and settlement finality. As in the case of cash, it will not earn any interest and can be converted to other forms of money, like deposits with banks,” the official RBI release stated.
With the digital Rupee, the broader wish of RBI is to execute a full-fledged launch of the Central Bank Digital Currency (CBDC) in the near future.
