Reserve bank of India, As per the reports has announced that there will be soon launching a concept of India’s First Pilot For the Retail Digital Rupee (e-rupee) also said as the Central Bank Digital Currency (CBDC) on 1st December 2022. It is mainly done to make money payments and transactions easier and fast. It is around 1 month completed to the launch of the Wholesale e-rupee Launch.
As per the updates given by the official the RBI digital currency will only cover the selected locations in a method of the Closed User Group (CUG) which will comprise the customers and merchants who all are participating.
Currently, for the launch and for some period of time phase the following bank like ICICI Bank, State Bank of India (SBI), Yes bank, IDFC First Bank, and HDFC Bank will be part of this retail e-rupee and other banks such as Bank of Baroda, Union Bank, and Kotak Mahindra Bank are currently not a part of this but soon they will enter the e-rupee concept.
RBI Says, the e-rupee is generally a digital/online form of the Indian currency which is currently used by all of us. On 7th October 2022, Central Bank showcased a Concept note which is interlinked with the e-rupee and CBDC, the design and other tech policies will consider a big change in the concept of the Digital e-rupee.
Will UPI and Other Online Payment Applications get Replaced after the Digital Rupee
As per the reports and the experts who are continuously researching the topic of the digital rupee says that the e-rupee is just a new, innovative, easy and fast way to do transactions but it is currently not in a phase for some years where it can replace the online payment options such as UPI, Gpay, Paytm, etc.
It will only represent that there will be options to make digital transactions which will go as a step of purchasing the digital currency from the bank and making transactions safely from wallet to wallet.
Transactions of this currency can be done in various forms such as Person to Person (P2P) and Person to Merchant (P2M).