An initiative to make India a technology forward society, Reserve Bank of India (RBI) has launched a nationwide program to use Central Bank Digital Currency (CBDC) or E-Rupee. The said pilot program was launched on November 1, 2022 for a limited time trial at a select few locations in a Closed User Group (CUG) comprising around 15,000 consumers and merchants across the country.
Trial 1st phase run of E-Rupee
As per reports, the volume of transactions are low in the trial phase, when compared to cash and Unified Payments Interface (UPI). Various users have reported some problems in the trial phase. If a transaction is delayed or fails, customers prefer to pay using other digital payment methods, which are currently faster.
First Phase of the Project:
The pilot project for now covers Mumbai, Delhi, Bengaluru and Bhubaneswar, however, the program will later be extended to Ahmedabad, Gangtok, Guwahati, Hyderabad, Indore, Kochi, Lucknow, Patna and Shimla. In the 1st Testing Phase, four banks namely, State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank are part of the project. These will be joined by Bank of Baroda, Union Bank of India, HDFC Bank and Kotak Mahindra Bank in future.
Frequently asked questions about E-Rupee
What is E-Rupee?
The Digital Rupee (e₹) or E-INR or E-Rupee is a planned electronic form of sovereign currency of the Indian Rupee and is issued by the Reserve Bank of India (RBI).
How is E-Rupee different from UPI?
The biggest difference between E-Rupee and UPI is that, E-Rupee itself is a currency in digital form enabling digital transactions, whereas UPI is a platform through which digital transactions happen.
Where can one buy E-Rupee?
Firstly, you need to register to use the E-Rupee wallet. The e₹ wallet is like a physical wallet but in digital form on your Android phone. Once the registration is done, you have to load money into the wallet.
Who will issue E-Rupee?
So far, National Payment Corporation of India (NPCI) has partnered with 11 banks for e-RUPI transactions including State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank.
Is E-Rupee a cryptocurrency?
E-Rupee will connect the sponsors of the services with the beneficiaries and service providers in a digital manner without any physical interface. It is important to note that E-Rupee is not a cryptocurrency.
