Basic features of newly launched Digital Rupee
Basic features of newly launched Digital Rupee:
- Digital Rupee (eRs-R) would be in the form of a digital token that represents legal tender.
- above Digital Rupee would be issued in same denominations that paper currency & coins are existing issued.
- Digital Rupee (eRs-R) would be distributed via intermediaries ie. banks.
- 8 Pvt or Public sector banks have been identified for phase-wise participation in this pilot.
- 1st phase will begin with only 4 Pvt or Public sector banks, namely Yes Bank, ICICI Bank, State Bank of India, and IDFC First Bank in 4 cities across the nation.
- Pilot would started cover 4 majors cities, namely, Bengaluru, Mumbai, New Delhi & Bhubaneswar.
- Users will be able to transact with eRs-R via a digital wallet offered by participating banks & Digital Rupee (eRs-R) stored on mobile devices or phones.
- When we have money in our bank account, i Digital Rupee (eRs-R) usually attracts interest. When Digital Rupee (eRs-R) comes to the eRs-R , it won’t earn any interest and its value of it will remain constant.
- Transactions can be both person-to-merchant (P2M) & person-to-person (P2P). Payments to merchants can be made very easily and fastly via quick response (QR) codes displayed at merchant locations.
Benefit & Taxation over virtual assets is that Digital Rupee (eRs-R)
- Benefit over virtual assets is that Digital Rupee (eRs-R) is issued & controlled by Reserve Bank of India,
- The “anonymity component” is essential for the acceptability of the virtual currency, he said, and the CBDC would enable better financial transmission at a significantly lower cost.
- According to a source, the RBI has ordered banks to allow customers the same level of anonymity as cash transactions by not tracking or recording e-R transactions worth less than Rs 50,000.
- “It collaborates, completes, and incubates additional innovation while also completing the money architecture in vogue.”
- The same confidence and trust that are associated with bank notes issued by the RBI can also be applied to the token-based digital rupee. With the use of an app, consumers may send and receive payments entirely digitally using the digital rupee.
- According to a video RBI : when the pilot project was launched for a closed user group, the usage of digital rupee is also anticipated to save operating costs associated with the handling of physical cash while also promoting financial inclusion in the economy.
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