The Reserve Bank of India announced the launch of the first pilot for retail digital Rupee.
Digital Rupee or e-Rupee is a form of digital token that represents legal tender. Unlike cryptocurrencies, the digital Rupee is issued in the same denominations as paper currency and coins.
The first pilot of Digital Rupee or e-rupee will launch on 1st December, 2022.
RBI has partnered with four banks across four cities initially, namely 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.
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.
The RBI 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.
“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.
