Digital Rupee pilot begins today, 5 major things you should know

1 Dec 2022 , 04:13 PM

The digital Rupee, which has been officially introduced by the Reserve Bank of India (RBI), is a new digital token. Starting today, some banks in specific cities will offer the digital Rupee (e-Rupee) for sale and transaction. Here are five things to consider regarding the digital Rupee if you intend to purchase India’s official digital currency.

1)      Digital Rupee versus Cryptocurrency

Comparing the digital Rupee to conventional cryptocurrencies is not accurate. This is also referred to as Central Bank Digital Currency (CBDC), which denotes that the RBI, in this situation, is the backer of the currency. The primary attribute of a cryptocurrency is decentralization, whereas the RBI issues and controls the digital rupee, and it is the central bank that determines all of the CBDC’s specifications.

2)      Where to get Digital Rupee in India

State Bank of India, ICICI Bank, Yes Bank, and IDFC First Bank are the four banks that have been granted licences by the RBI as part of the pilot program to issue digital rupees in India at the moment. As of right present, only Mumbai, New Delhi, Bengaluru, and Bhubaneswar may access the digital rupee. More people will be able to purchase the digital Rupee in the coming days thanks to the expansion of its availability to Ahmedabad, Lucknow, Hyderabad, Indore, Gangtok, Guwahati, Kochi, Patna, and Shimla.

3)      How to buy Digital Rupee

Users will be able to purchase the digital rupee from the four designated banks stated above using the official app or website. There is currently no precise information on whether these banks will permit consumers to purchase digital rupee through their current apps or will introduce a new app or website only to deal in digital rupee.

4)      Can Digital Rupee be shared with friends and family

In the same way a cryptocurrency may be shared with friends and family, this too can be shared. Once more, this is only possible with supported apps from Indian banks that have been granted a licence to distribute them. The digital rupee can be kept in a Paytm wallet, which can be used for a variety of transactions, just like real money. The RBI has even said that all institutions (private and public, alike), as well as people, shall regard the digital Rupee as legal money.

5)      Digital versus Physical

In most places, this can be used just like a real rupee. You won’t be able to get your money back in the form of actual currency, though. However, commercial banks can be used to exchange digital rupees for cash.