What Is RBI Digital Currency  & How It Will Change The Financial System 

The pilot in retail segment, known as digital Rupee-Retail (e₹-R), was launched on December 01, 2022, within a closed user group (CUG) comprising participating customers and merchants.

The digital currency project of RBI

As a sort of central bank digital currency, the RBI will issue the digital rupee (e₹), also referred to as the e-Rupee or e-INR (CBDC). After being suggested in January 2017, the digital rupee would be introduced in the fiscal years 2022–2023.  In the digital rupee, distributed ledger technology will be used.

The“Concept Note” of the RBI addresses the goals, options, advantages, and hazards of issuing an electronic CBDC in India (digital rupee). In addition to the present types of money, the e₹ will offer another choice.

What is CBDC? According to the Reserve Bank, CBDC is digitally issued legal tender from a central bank. It is interchangeable 1:1 with the fiat currency and functions just like a sovereign currency.

While money in digital form is predominant in India – for example in bank accounts recorded as book entries on commercial bank ledgers – a CBDC would differ from existing digital money available to the public because a CBDC would be a liability of the Reserve Bank and not of a commercial bank.

How can I purchase and use Indian RBI digital Rupee? The RBI introduced the digital rupee on 1 December 2022, in four Indian cities.  Residents of Mumbai, Bengaluru, New Delhi, and Bhubaneswar can now swap digital rupees using digital wallets provided by the collaborating bank.

The digital rupee can be exchanged for other currencies, such as bank deposits, but it will not accrue interest. The retail use of digital rupees, distribution, and the stability of entire creation will all be evaluated in real-time as part of the e₹ trial. 

Where am I able to purchase digital rupees? The four banks to which the RBI has granted licences to provide digital rupees for purchase are the IDFC First Bank, Yes Bank, ICICI Bank, and State Bank of India.