Dec 2, 2022
The retail pilot of the Reserve Bank of India’s (RBI) digital currency has gone live on December 1, 2022.
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RBI describes Digital Rupee (e₹) as the legal tender issued by a central bank in a digital form.
State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank have participated in the pilot launch.
The e₹-R is not comparable to the private virtual currencies like cryptocurrencies. Here are the perks.
The e₹-R lowers the cost of issuance of money and transactions.
The e₹-R is freely convertible against cash, unlike cryptocurrencies.
Potentially everyone, including private sector, non-financial consumers and businesses will be able to use retail digital rupee.
Holders of retail digital rupee need not have a bank account.
The retail digital rupee is accepted as a medium of payment or legal tender.
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