To study the digital rupee in a retail setting, a closed user group has been formed with merchants and customers. The CBDC is a digital token and will be a legal tender when launched formally in the country.
The e-rupee will be issued in the same denominations as paper rupee notes and coins. So there will be an e-rupee for fifty paisa, and one, five, ten, twenty rupees, and the larger amounts of hundred, five hundred and two thousand e-rupees.
How can one get or buy e-rupee or CBDC?
The e-rupee or digital rupee will be available via banks. A digital wallet will be made available by banks to store the digital rupee. The wallet can be downloaded on a mobile phone or other devices. One it is legal tender, the e rupee can be used just like ordinary rupees, and sent to other people and merchants or recipients. QR codes will also be available to easily scan and send e rupee.
How safe will be the e-rupee?
The RBI’s pilot study is expected to test safety and security aspect of the e-rupee. As per RBI’s note, the robustness of the entire transaction will be on test as well as different features and applications of the e-rupee. The CBDC can also be used to make deposits. But when kept in wallets, it will not earn interest.
What will be the value of e-rupee? Will it be volatile like Bitcoin?
One e-rupee will equal one ordinary rupee, as it is a stable currency.
Will there be more pilots? Is e-rupee about to be launched?
As per the RBI note, “different features and applications of the e₹-R token and architecture will be tested in future pilots, based on the learnings from this pilot.”
The current retail e-rupee pilot will be tested by a group of four banks to begin with. These are: State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank (in four cities). New banks to join later will be: Bank of Baroda, Union Bank of India, HDFC Bank and Kotak Mahindra Bank.
Which cities will the digital or e rupee be tested in?
Mumbai, New Delhi, Bengaluru and Bhubaneswar. More cities to join later will be: Ahmedabad, Gangtok, Guwahati, Hyderabad, Indore, Kochi, Lucknow, Patna and Shimla.
As per RBI, “the scope of pilot may be expanded gradually to include more banks, users and locations as needed.”
Read more about RBI and CBDC: https://www.blockmagic.in/?s=rbi+cbdc
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