The Reserve Bank of India has launched a significant effort to promote the use of the digital rupee throughout the nation. The Reserve Bank of India will introduce the first retail digital rupee (e-R) pilot project today, December 1. The government made an announcement regarding this in the budget, and numerous strategies are currently being developed to promote digital currency throughout the nation.
Reserve Bank (CBDC) refers to the digital currency as Central Bank Digital Currency. The country becoming cashless will benefit significantly from this as well.
What is Digital Rupee?
Currently, we use coins and RBI-issued notes worth 200 and 500 rupees. This will be available in digital form as Digital Rupee. refers to the rupee in its electronic form, which we will utilize without touching.
It is a blockchain-based system
In order for you to conduct transactions, let us explain that digital currency is a type of blockchain-based digital system. In addition to this, you can conduct transactions without using a bank while using retail cash. Compared to UPI, this method is extremely different.
Which banks will be involved?
In addition, SBI, ICICI Bank, Yes Bank, and IDFC First Bank will be the first to be mentioned. At the same time, it would later include the Bank of Baroda, Union Bank, Kotak Bank, and HDFC Bank.
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Which cities will start first?
According to information obtained from the administration, the first phase will begin in 4 cities. Bhubaneswar, Bengaluru, Mumbai, and New Delhi will be the first cities it will begin. As a result, it is planned to be expanded to Shimla, Hyderabad, Ahmedabad, Gangtok, Guwahati, Indore, Kochi, Lucknow, Patna, and Ahmedabad.
A huge amount of rupees are spent on printing notes
The government will be greatly relieved from the enormous expense of producing money after the adoption of digital currency. A 100 rupee note currently costs the government between 15 and 17 rupees to print. A note, however, only lasts for around four years. It costs the central bank thousands of crores to print notes. At the same time, digital currency is free of charge. Additionally, the issue of fraudulent notes will be totally resolved.