Gleeful news for those who are eagerly waiting for digital tokens. The Reserve Bank of India prepared for the first pilot Digital Rupee (e₹-R) in four cities of India – Bengaluru, Mumbai, Bhubaneshwar, and New Delhi later the trial will extends to Ahmedabad, Gangtok, Guwahati, Hyderabad, Indore, Kochi, Lucknow, Patna, Shimla.
What is (e₹-R)
RBI said that the value of the Digital currency will be same as the value of Coins and Paper Currency. The Digital Rupee introduced as Digital Token which represents legal tender distributed among intermediaries like banks’-rupee will be stored on mobile phones and other devices to access easily. Digital rupee transactions can be executed by a digital wallet offered by participating banks. Eight banks have been identified for this trial by the Reserve Bank of India.
First phase
The central bank (RBI) began its first phase with the State Bank of India, Yes Bank, ICIC Bank, and IDFC Bank. Banks like HDFC Bank, Union Bank, Bank of Baroda Bank, Kotak Mahindra Bank will also join gradually. After that the scope will be expanded to include more banks, users, locations.
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(e₹-R) will offer an aspect of physical cash such as trust, safety, and settlement which means remains the same and couldn’t be changed in other forms such as money or deposits with banks
What is P2P and P2M
Digital rupee transactions can be done by both for a Person-to-Person and Person-to-Merchant. Hence it is stated that payment to the merchant could be made using a QR (Quick Response) code displayed at merchant locations.
Additionally, the pilot will test the robustness of the entire process of digital rupee creation, distribution and retail usage in real time. Different features and applications of retail digital token (e₹-R) and architecture will be tested in future pilots based on learning of this pilot.
