The e₹-R offers features of physical cash like trust, safety and settlement finality. Digital Rupee or e₹, is India’s Central Bank Digital Currency (CBDC). The e₹-R would be in the form of a digital token that represents legal tender. Users will be able to transact with e₹-R through a digital wallet offered by the participating banks and stored on mobile phones/devices. Simply put, it’s just like rupee (₹) notes but in digital form (e₹).
To buy digital Rupee, users will need to head to the official app or website of any of the four designated banks. The RBI said that this digital rupee will offer trust, safety and settlement finality like the physical currency. However, it will not earn any interest and can be converted to other forms of money, like deposits with banks. In this read, we discussed how you can download the e-Rupee app on your phone, set it up, and use it to pay, receive, add money, and transfer it back into your bank account. Currently, the e-Rupee app is under pilot testing right now and is only available via the partner bank websites only.
While MobiKwik has rolled out a full version of its e₹ wallet to all Android users, Cred has launched a beta version accessible to a limited user base. Both platforms are leveraging partnerships with Yes Bank to enable these services. Cred will be providing access to its e-rupee wallet to a limited group of users, with the issuance of e-rupee tokens in the wallets being managed by YES Bank.
Digital Rupee and cryptocurrency are two different things and are in no way linked to one another. While crypto is based on blockchain, that’s not the case with digital Rupee. The newly launched digital Rupee is Central Bank Digital Currency (CBDC), and the primary idea behind launching it is to eliminate cash money from the market eventually. To initiate transactions, download the Digital Rupee app and register for the Digital Rupee wallet. Customers can transfer the tokens to each other through Mobile No. and QR Code. Make sure to download the e-Rupee app from the official websites of the above-mentioned banks only, as the app is not yet available on Google Play Store and Apple App Store.
No, digital rupee and cryptocurrency are different and are not linked to one another. Cryptocurrency is a risk-driven market and its value changes depending on the market conditions while the value of digital rupee is fixed. Its value remains the same throughout, just like the value of physical cash. Though the Central Bank Digital Currency (CBDC) is different from cryptocurrency in all aspects, it can be compared with crypto in fields of benefits. One of the notable benefits of CBDC is that government bodies and other companies accept digital rupees as legal tender, means of payment, safe deposits, etc.
Currently, opening of e₹ wallets is linked to user’s saving accounts. This linkage facilitates frictionless user onboarding and obviates the need for separate KYC requirement. Based on the feedback and emerging use cases, new models of user on-boarding are also being explored. Based on MobiKwik’s response, it does not seem like the CBDC wallet offers any significant additional benefit to the consumer.
E₹ wallet is a digital wallet that can be opened on one’s mobile phone/device. E₹ wallet stores the Digital Rupee, similar to the physical wallet/purse that stores the physical currency. E₹ wallets are being currently provided by banks and non-banks, which are part of the retail CBDC pilot. Users will have to make the transactions through a digital wallet offered by the participating banks and stored on mobile phones/devices. The digital rupee can be used for both person-to-person (P2P) and person-to-merchant (P2M) transactions. One Mobikwik Systems Ltd. and Cred have recently initiated their individual e-rupee pilot programs in partnership with the Reserve Bank of India (RBI).
There are 5 parameters defined by RBI to program Special purpose digital Rupee. User can choose to redeem/unload Digital rupee to their Savings account. Minimum payment of ₹50 post getting all discount is mandatory to avail the offer. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited. The Tiger Global and Peak XV-backed fintech will initially roll out the service to a select set of users. The company has roped in private lender Yes Bank to enable CBDC issuance.
