Cash in your pocket is soon about to be a thing of a bygone era. RBI (Reserve Bank of India) has given the Go-Ahead to Digital Rupee Pilot Project from 1st December 2022.
This CBDC is the first-ever Digital Currency Retail Pilot Project In India.
Light On CBDC?
CBDC stands for Central Bank Digital Currency. Several countries have already launched their own CBDC before India.
In other words, CBDC is a cryptocurrency government backs in addition to regulating.
Things You Must Know About Digital Rupee?
What is more important is this CBDC is set to be part of every Indian’s financial life. You must know a couple of things for this reason.
Given below is the list of things you must know about the Digital Rupee:
- First, it will be a digital version of Indian currency notes.
- Second, users will be able to use it for the purchase or exchange of products, services, or anything.
- Third, P2P and P2C financial transactions are possible with it.
- Even transactions through mobile wallets and QR-Scan codes are also possible with it.
Therefore, RBI has decided to launch it on the retail front also. The Entire distribution process as well as utilization will also be tested.
The testing process will be carried out during the roll-out of the Retail Digital Rupee Pilot Project. India’s banking government has initially selected the four most popular metropolitan cities to launch it.
Following are metropolitan cities likely to be covered during the first phase of its launch:
- New Delhi – National Capital
Cities Likely To Be Covered Later:
Moreover, people in the following cities will access it after the success of the first phase of its launch:
Who Will Control The First Phase of Its Launch?
CUG (Controlled User Groups) is the answer to this question. A couple of banks have been finalized for the purpose of facilitating everything related to it. Listed below are the banks:
- ICICI Bank
- State Bank of India
- Yes Bank
- IDFC Bank
Bank of Baroda, Union Bank of India, HDFC Bank, and Kotak Mahindra Bank will also join the bandwagon later.
Distribution And Transaction Process:
Only eligible banks can control the entire distribution process of the Digital Rupee. Moreover, transactions are possible only through the digital wallets of eligible banks. Storage of it on mobile or other devices will is also possible.
Specialties of Digital Rupee:
- First and foremost, its financial value is similar to the value of FIAT currency (Indian Papermoney).
- All features of traditional centralized paper money. Features like Trust, Security as well as Setelemtn finality.
- Furthermore, users can convert it to other forms of currency as well.
- However, users will not get any interest on keeping it in their bank account.
- International transactions will also become less expensive.
More importantly, an internet connection for payments will not be required. In other words, get ready to send or receive money without an internet connection.
Get ready to experience the value the new financial era is about to add to your financial life. Internet connection requirements for financial transactions will now be a thing of a bygone era soon.
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Who Will Get Benefitted From Digital Rupee The Most?
Everyone is going to be benefitted from it. However, those who do not have an internet connection will now be able to transfer funds easily.
When Is RBI Rolling Out Digital Rupee Nationwide?
RBI has not said anything about it yet.
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