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Digital Rupee🪙🪙

India has made impressive progress in the digital payment ecosystem. Starting from RTGS, and NEFT to UPI and NETC India has introduced a variety of modes of payment suitable for a range of consumers.

Technological advancements have led to a new form of currency, the CBDC (Central Bank Digital Currencies). In simple terms, CBDC is a legal tender issued by the central bank in a digital format that enables us an additional option to hold/exchange money.

It would work as an e-rupee and can circulate like paper currency its counterpart. E-Rupee will be appearing as a liability on the central bank’s balance sheet similar to the paper currency.

1 e-Rupee can be exchanged for 1 rupee in cash or bank terms. This mode is introduced as this can help reduce the cost associated with physical cash management, and helps reach new markets and remote unreachable places. The government believes this new system has the potential to create an efficient and innovative payment ecosystem.