The march to digital form of currencies across the globe is continuing rapidly. And India is at the forefront of this movement to shun cash and adopt digital payments of one sort or the other. The same applies to e-rupee, which has been much in the news, but scarce on the ground as it is still to be widely adopted, but the groundwork for which has been established by the Reserve Bank of India.
Right at the start, it should be understood that the e-rupee, or digital rupee, is not a bitcoin-like cryptocurrency. The e-rupee has an intrinsic value while bitcoin does not. it represents a digital form of India’s currency, the Indian rupee. Notably, it uses blockchain or distributed ledger technology that allows for secure buying/selling transactions. It is totally controlled by the RBI and has no other authority ruling it. The e-rupee is also issued by the central bank.
What is e-rupee?
e-rupee is simply digital currency available in electronic form that can be used on smartphones and other gadgets to make payments. All that a user has to do is scan and pay. The purpose of e-rupee is the same as physical bank cash notes.
Reason for e-rupee’s existence
There are a number of reasons why e-rupee came into existence and some of these are:
1. Boost financial inclusion
2. Provide better access to formal financial services to users
3. Introduce greater efficiency during the payments process by making it faster
4. Bring greater security in digital payment methods
5. Take advantage of country’s technological advancements
6. Put into motion the process of making Indian e-first economy
7. Decrease the use of physical currency
8. Allow greater regulatory control over monetary transactions
9. Allow cracking down on illegal activities.
How to use e-rupee
With all that having been said, the exact way to use the e-rupee needs to be explained. After all, you are not going to run into it in the normal course of the day. In case you are interested in the concept of the e-rupee and want to start using it, you can get Digital Rupee through digital wallets provided by some banks and they serve as secure digital storage for the currency. These digital tokens can even be converted to e-Rupee using a UPI gateway.
And how will you use the e-rupee on a daily basis? There are actually two ways. These have been divided on the basis of individuals and establishments.
You can do Person-to-Person transfer of money (to their wallet) with a QR code or even their mobile phone number. Person-to-Merchant transfer of money can happen by scanning the QR code displayed at shops. And yes, you can easily convert your e-rupee into physical cash.
Notably, Reuters reported that RBI may allow other financial entities apart from banks to offer the e-rupee (through CBDC wallets). This includes PhonePe, Google Pay and Paytm.
Know how you can access the blessings of yet another form of digital payments. Check out what e-rupee is and how to use it. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
