Digital Rupee or e-Rupee is a form of digital token that represents legal tender. The Reserve Bank of India on Tuesday, December 1, launched first pilot batch of Digital Rupee. The experiment would include chosen locations in closed user groups (CUGs) comprised of participating customers and retailers, according to an RBI statement.
What is Digital Rupee ?
The digital rupee will be the digital equivalent of physical currency. The RBI’s eRs-R would take the form of a digital token representing legal tender.
The Digital Rupee would be in the same denominations that paper money and coins are now.
Banks To Issue Digital Rupee
It would be dispersed via middlemen such as banks. The first phase would begin with four banks across four locations throughout the country, namely State Bank of India, ICICI Bank, Yes Bank, and IDFC First Bank.
Following that, four other institutions, namely Bank of Baroda, Union Bank of India, HDFC Bank, and Kotak Mahindra Bank, would join this experiment. To begin with four cities: Mumbai, New Delhi, Bengaluru, and Bhubaneswar.