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India’s very own official digital rupees means digital currency is likely to debut by early 2023, which will mirror any of the currently available private company-operated electronic wallets, but with a change that it will be a sovereign-backed facility. Finance Minister Nirmala Sitharaman said in her budget speech. She also talked about launching a Reserve Bank of India (RBI)-backed ‘digital rupee’ soon.
The RBI has indicated that the digital rupees would be ready by the end of the next financial year 2023. It will be first Indian digital currency, officially.
The digital rupees complex blockchain, being developed by the Reserve Bank, would be able to trace all transactions, unlike the current system of mobile wallets offered by private companies.
Explaining further, the source said that using an electronic wallet, people currently transfer money to a private company that holds the money on his/her behalf and pays a merchant when there is any transaction.
“Digital currency will also lead to a more efficient and cheaper currency management system. It is, therefore, proposed to introduce Digital Rupees online, using the blockchain and other technologies, to be issued by the Reserve Bank of India starting 2022-23,” the minister had said.
The exact regulation governing this Central Bank Digital Currency (CBDC) is yet to be finalized.
CBDC is a digital or virtual currency, but it is not comparable to the private virtual currencies or cryptocurrencies that have mushroomed over the last decade. Private virtual currencies do not represent any person’s debt or liabilities as there is no issuer.
The government has already said that private cryptocurrencies will never be legal tender. The RBI has been strongly opposing private cryptocurrencies as they could have implications on national security and financial stability.
Wholesale CBDC:- Wholesale CBDC rupees is designed for restricted access to select financial institutions. the wholesale CBDC is designed for the settlement of interbank transfers and related wholesale transactions.
Retail CBDC:- Retail CBDC is an electronic version of cash primarily meant for retail transactions. You can use it without the internet. Nine banks, viz., State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank, and HSBC have been identified for participation in the retail currency pilot.
Now CBDC/ RBI has launched its pilot project via four banks along with ICICI Bank. You can download the ICICI Bank CBDC wallet from the ICICI Bank digital wallet Link, Click Here
Soon you will get all the Digital e-rupee loans on your app. All the banks are planning to provide digital e-rupee loans via the CBDC app. RBI is working on it too. With the help of a single RBI CBDC e-rupee app, you can apply for a digital e-rupee loan from any bank in your digital wallet.
eRupee by SBI: State Bank of India’s offering as a wallet for the Digital Rupee network. It has over 500K downloads on Google Play Store and is rated 4.2 stars 1.
Digital Rupee by ICICI Bank: ICICI Digital Rupee App offers e₹ wallet and enables the users to transact in e₹ 2.
Canara Digital Rupee: Canara Digital Rupee ensures that all transactions are secure and fast, making it an excellent option for those who want to avoid the hassle of carrying cash or cards 3.
Digital Rupee by UBI: Union Bank of India’s offering as a wallet for the Digital Rupee network 4.
Digital Rupees is the legal tender issued by a central bank in digital form. It is the same as a fiat currency and is exchangeable one-to-one with the fiat currency. Only its form is different.
You can buy digital rupees via your digital wallet. it will be in digital form and you can use it as your current currency.
Yes, you can convert digital currency into cash via authorized partners.
Yes, Banks will accept the Indian digital rupees only.
Yes, Digital rupees are legal tender in India because it is issued by the RBI.
Because of a digital and online presence. Anyone can buy digital rupees online globally.
As per the sources, the CBDC will launch Digital Rupee on 01 November 2022 as a pilot for bankers only.
The CDBC launched the retail digital rupees on 1st December 2022 in five metro cities ie Mumbai, Delhi, etc.
Nine banks State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank, and HSBC have been identified for participation in the retail currency pilot.
You can download the Indian digital currency app via State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank, and HSBC bank websites directly.