RBI’s Digital Rupee to be launched in Delhi, Mumbai, Bangalore and Bhubaneswar from today

RBI Digital Currency: The first pilot launch of RBI’s digital currency is going to happen today. This pilot project is going to be launched first in Delhi, Mumbai, Bangalore and Bhubaneswar. According to RBI, 8 banks have been identified for the pilot project. In the first phase, four banks including State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank are participating in the pilot project in four cities of the country. This pilot project will be covered in a closed user group at select locations which will include participating customers as well as merchants.

Let us tell you that no interest will be given on the digital currency deposited in the wallet like cash. Also, it can be converted into other types of currency ie deposits with banks. According to RBI, based on the experiences of this pilot project, different features and applications of digital currency will be tested in future pilot projects.

Digital Rupee (e₹-R) will be in the form of digital token which will be legal tender. E-Rupee (e₹-R) will work as a digital token. Digital token will work in the same way as currency notes and coins work. And it will be available in the same value as the currency of the denomination. Digital Rupee will be distributed through banks. In a statement issued on Tuesday, November 29, 2022, the RBI had said that by storing digital money in their mobile phones or devices, users will be able to transact through digital money from banks’ digital wallets.

Transactions in digital form can be done Person to Person (P2P) i.e. between two persons and Person to Merchant (P2M) i.e. between a person and a merchant. Payment to a merchant i.e. a shopkeeper can be made through the QR codes being displayed at the location of the merchant. Similar to physical currency in digital form, it will be equipped with features like trust, safety and settlement facility.

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Presently Digital Rupee is being launched in four cities from today but later Digital Rupee will also be launched in Ahmedabad, Gangtok, Guwahati, Hyderabad, Indore, Kochi, Lucknow, Patna and Shimla. And in addition to the banks joining the first phase in the pilot project, Bank of Baroda, Union Bank, HDFC Bank and Kotak Mahindra Bank will join later.

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