The Indian Reserve Bank (RBI) has created India’s first official digital currency, the Digital Rupee, which can be acquired at four major banks throughout the country.
The Reserve Bank of India (RBI) has released the digital Rupee, the country’s first digital token. Starting today, the electronic Rupee (e-R) can be purchased and traded at a number of participating banks in a number of different cities. Here are five things to remember about the digital Rupee if you’re thinking about purchasing India’s official digital currency.
A digital rupee is not a cryptocurrency.
In contrast to other digital currencies, the digital Rupee has some unique features. The Reserve Bank of India (RBI) supports this digital currency, hence its other name, Central Bank Digital Currency (CBDC). The Reserve Bank of India (RBI) issues and controls the digital rupee, and the CBDC’s criteria are determined by the RBI as well.
Digital Rupee will have a set value and is also regarded legal cash in India, unlike cryptocurrencies, whose value varies based on the volume of transactions. As a result, the digital Rupee can be used for both p-to-p and p-to-m transactions.
Where can I buy Indian digital rupees in India?
State Bank of India, ICICI Bank, Yes Bank, and IDFC First Bank are the four banks that have received licences from RBI to issue digital Rupee as part of the trial programme. Similarly, the Bank of Baroda, Union Bank of India, HDFC Bank, and Kotak Mahindra Bank will soon be able to distribute digital rupees in India.
Only Mumbai, New Delhi, Bengaluru, and Bhubaneswar currently offer the digital Rupee. To accommodate a larger customer base, the digital Rupee will soon be made available in the cities of Ahmedabad, Lucknow, Hyderabad, Indore, Gangtok, Guwahati, Kochi, Patna, and Shimla.
Where can I make a purchase of virtual Rupees?
Users will be able to purchase digital Rupees from the aforementioned four selected banks via the official app or website. As of this writing, it is unclear whether these banks would add support for digital Rupee purchases within their existing apps or if they will instead launch a dedicated app or website for digital Rupee transactions. In contrast to the use of a bank account while dealing with actual rupees, the use of a digital Rupee does not necessitate the use of a bank account.
Is it possible to transfer or receive virtual Rupees from a friend or family member?
Just like with cryptocurrencies, this can be transferred to a loved one. Again, this is something that can only be done via the official banking applications in India. You may use the digital Rupee in the same way you use a Paytm wallet to save money, meaning you can make purchases, pay bills, and more. According to the Reserve Bank of India (RBI), the digital Rupee is to be treated as legal money by all organisations (public and commercial) and people.
Comparison between digital and traditional Rupee
For most purposes, this is equivalent to a real rupee. You can’t get it in your hands as cash, though. The digital Rupee, however, is redeemable for hard currency at commercial banks. Having money in a bank account frequently results in additional interest being paid out. The value of the digital Rupee will not change and it will not accrue interest.
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Bimal Mardi is a Professional Content Writer. He works in First Santal Broadcast Network TV/ News channel in India. Bimal Maradi writes about Technology, Education and Tech Product Reviews