RBI Digital Rupee: Digital currency for transactions from today, know its benefits

Pankaj Prasad
RBI Digital Rupee
RBI Digital Rupee

Regarding digital currency, RBI has said that digital rupee will be distributed through banks.

Digital Rupee: The Reserve Bank of India (RBI) is starting the first pilot test for the retail use of digital rupee from today. The Reserve Bank has named its digital currency as Central Bank Digital Currency. At present, four public and private sector banks have been included under the pilot test. Significantly, while giving this information in a statement on Tuesday, RBI had talked about pilot testing.

There will be ease in transactions with e-rupee: Regarding digital currency, RBI has said that digital rupee will be distributed through banks. At the same time, under the pilot project, users will be able to transact with e-rupee through digital wallets offered by banks participating in the test. These transactions can be done in both P2P and P2M formats.

Four banks will be involved: Four banks including State Bank of India and ICICI Bank will be involved in this trial of retail use of digital rupee. The pilot test of RBI will be done in the country's capital Delhi including Mumbai, Bengaluru and Bhubaneswar. RBI has said that the electronic rupee will be in the form of a digital token, which will represent a valid currency. It will be issued in the existing size of paper currency and coins being issued at this time.

Digital rupee will be equipped with these features: Regarding digital currency, RBI says that this rupee will give confidence, security and final solution to the holder just like traditional cash currency. RBI said that like cash, the holder of digital rupee will not get any interest and it can be used for deposits with banks.