Digital rupee debuts in retail: The Reserve Bank of India announced on Tuesday that it will trial a retail digital rupee (eRs-R) on December 1. According to an RBI statement, the pilot will cover selected locations in Closed User Groups (CUGs), which include participating customers and merchants.
Digital Rupee: All you need to know
1) eRs-R will take the form of digital tokens representing legal tender.
2) The digital rupee will be issued in the same denomination as the currently issued notes and coins.
3) It will be distributed through an intermediary – the bank.
4) According to the central bank, eight banks have been identified to participate in the pilot in stages.
5) The first phase will start with four banks of State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank in four cities across the country.
6) Four more banks, namely Bank of Baroda, Union Bank of India, HDFC Bank and Kotak Mahindra Bank will join the pilot.
7) The pilot will initially cover four cities namely Mumbai, New Delhi, Bengaluru and Bhubaneshwar.
8) Later it will be extended to Ahmedabad, Gangtok, Guwahati, Hyderabad, Indore, Cochin, Lucknow, Patna and Shimla.
9) Users will be able to transact with eRs-R through digital wallets provided by participating banks and stored on their phones/devices.
10) Transactions can be person-to-person (P2P) and person-to-merchant (P2M). Payments to merchants can be made using a quick response (QR) code displayed at the merchant’s location, according to the statement.
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