On Tuesday, the Reserve Bank of India (RBI) launched the digital currency or E-rupee pilot project, which will be regulated by the RBI itself. To launch E-rupee, the RBI has selected 9 banks including SBI, HDFC, and ICICI. For now, it can be used only for bulk payments, and will be used for cross-border payments. 60 central banks across the world have shown interest in E-rupee. This is another payment method which will support the existing payment system.
There are a number of benefits associated with digital currency, the monitoring of E-rupee will be easy, and the government will be able to know as to where the money is, the transaction cost will be less and the money spent in printing notes will be saved, along with the reduction of dependence on commercial banks.
In order for people to get access to E-rupee, the RBI will soon be launching a mobile app. E-rupee will be available in the form of a digital token, and users will be able to utilize it like cash. This will also have the same RBI guarantee which currency notes have. People will also be able to take E-rupee in lieu of money from their bank accounts.
People will also be able to make small payments with E-rupee, and it will especially be useful for businessmen and organizations who carry out bulk transactions, as they will not be required to carry large amounts in cash.
