India introduced Digital currency with digital rupee

India introduced Digital currency with digital rupee

On November 1st, the Reserve Bank of India started releasing Indian Rupee as a digital currency. The initial pilot test program for the Digital Rupee has been completed, and it will now be widely deployed. The State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank, and HSBC are the nine institutions that have taken part in this Reserve Bank’s trial program.

A brief about India introduced Digital currency with digital rupee:

Digital Rupee will now lessen people’s reliance on currency, and in certain aspects, it will also prove to be a good alternative for wholesale transactions. Currently, the transaction is completed using cash, rupees, checks, or any other type of financial system. Digital notes won’t take the place of physical currency, though. Wallet-to-wallet transfers will be possible.

What sets it apart from e-wallets like Google Pay, Paytm, and UPI?

E-wallets have a limit, but you can transfer more money there than with digital currency. Security, however, will also be a significant issue in this, therefore it cannot be ignored. The main concern is what would happen if money were sent to the wrong number. Additionally, RBI will clarify this in more detail.

Are currency notes dated?

No, that won’t happen. Transferring two lakhs to five lakhs is difficult right now, but it will get simpler soon. Improvements are also being made to cash transmission.

What makes it unique compared to online banking?

In net banking, there are cash-to-cash transactions and a payment fee. The use of digital currency won’t incur any fees.

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