Digital rupee from RBI: The nation’s central bank has made the announcement that the retail digital rupee will go live on December 1 as part of the first pilot project; the Indian Reserve Bank. It is also referred to as CBDC or Central Bank Digital Currency by the majority of people. The digital currency issued by the RBI will make certain procedures easier and cashless transactions easier.
Is the new method of payment going to take the place of UPI and mobile wallet?
Experts say that while the new payment system won’t directly compete with UPI and Mobile Wallet in terms of digital currency, it will give customers another way to pay. Digital currency can be purchased once by customers from the bank, transferred between wallets, or used to make purchases.
Digital rupee and UPI are not the same thing:
Vishwas Patel, director of Infibeam Avenues Ltd. and head of the Payments Council of India, claims that it is a physical payment method that is distinct from UPI. Without using a bank, digital money transactions are possible. The worth of the computerized money will be equivalent to the Indian Rupee, and your financial balance will be charged for the sum that was spent.
Retail digital currency is proposed to be introduced using a two-tier model. This indicates that the RBI will distribute digital rupees to banks, starting with four in the first phase. State Bank of India, ICICI Bank, IDFC First Bank, and Yes Bank are all included in this. Customers can buy digital currency from these banks. After that, you will be able to use your phone to conduct digital wallet transactions at these banks.
Payments can also be made with a QR code:
Digital currency can be used to make payments to other individuals or businesses. Additionally, you can pay with digital currency by scanning a QR code.
Number of cities and banks that will initially provide the services:
In the second step, the Reserve Bank of India (RBI) announced that Bank of Baroda, Union Bank of India, HDFC Bank, and Kotak Mahindra Bank will be able to accept payments in the Digital Rupee.The pilot program’s initial phase will include Mumbai, New Delhi, Bengaluru, and Bhubaneswar; subsequent phases will include Ahmedabad, Gangtok, Guwahati, Hyderabad, Indore, Kochi, Lucknow, Patna, and Shimla.
