RBI to launch digital rupee from December 1
It will cover select locations in the closed user groups of customers and merchants
RBI to launch digital rupee from December 1
It will cover select locations in the closed user groups of customers and merchants
The Reserve Bank of India (RBI) has announced the launch of the retail digital rupee (e-R) on 01 December 2022. It would be issued in the same denominations that paper currency and coins are currently issued.
It would be distributed through intermediary banks. For phase-wise participation, eight banks across the country have been identified in four cities - Mumbai, New Delhi, Bengaluru and Bhubaneswar. Later, it would be extended to Ahmedabad, Gangtok, Guwahati, Hyderabad, Indore, Kochi, Lucknow, Patna and Shimla.
The first phase comprises State Bank of India, ICICI Bank, Yes Bank, and IDFC First Bank, and subsequently, Bank of Baroda, Union Bank of India, HDFC Bank, and Kotak Mahindra Bank would be included.
The users will be able to transact with e-R through a digital wallet offered by the participating banks and stored on mobile phones/devices. The transactions could be both Person-to-Person (P2P) and Person to Merchant (P2M). Payments to merchants could be made using the QR codes displayed at merchant locations.
The e-R would offer features of physical cash like trust, safety and settlement finality. But unlike cash, it will not earn any interest. However, it can be converted to other forms of money, like deposits with banks.
The pilot project will test the robustness of the entire process of digital rupee creation, distribution, and retail usage. Based on the outcome, more features and applications of the e-R token and architecture would be incorporated.