Digital Rupee officially launched in India, which was a very long wait.
After the heavy cryptocurrency taxes in India, the crypto market declined, and there needed to be a gap in fulfilling the growing needs.
You may call it a masterstroke or a master plan; the Indian Government played it very well. However, of course, it is one of the best moves to grow the country during the growing times.
The development of the Digital Rupee was not an overnight success; the Government had been experimenting with it for a long time.
Digital Rupee e₹-R
Digital Rupee is India’s first official digital currency issued by the Reserve Bank of India.
This Digital Currency will be available only via banks as of now.
The Reserve Bank of India has officially launched its first digital token, the Digital Rupee e₹-R.
The Indian Digital Rupee e₹-R will be available for purchase and trade starting today via select banks in select cities.
Is the Digital Rupee a Cryptocurrency?
No, Digital Rupee is NOT a Cryptocurrency. The Indian digital Rupee is different from cryptocurrency.
Traditional cryptocurrency has no governing body behind it, but in Digital Rupee, there is RBI (Reserve Bank of India).
The Indian Government’s official body monitors the Indian Digital Rupee. This Indian Digital Rupee is called Central Bank Digital Currency (CBDC).
The Digital Rupee is issued and controlled by the Reserve Bank of India, and the central bank decides all the parameters for the CBDC.
The Digital Rupee will have a fixed value and is considered a legal tender in India.
Hence, the Digital Rupee can make person-to-person and person-to-merchant transactions.
Where to buy the digital Rupee in India?
The Reserve Bank of India has issued a license to the following four banks as of now:
- State Bank of India
- ICICI Bank
- Yes Bank
- IDFC First Bank
These banks can currently issue Digital Rupees in India.
Similarly, four more banks:
- Bank of Baroda
- Union Bank of India
- HDFC Bank
- Kotak Mahindra Bank
These banks will soon be able to allocate digital Rupees in India.
Which cities have the Digital Rupee in India?
As of now, the availability of the digital Rupee has also been limited to the following cities in India:
- Mumbai
- New Delhi
- Bengaluru
- Bhubaneswar
However, in the coming days, the availability of the digital Rupee will be expanded to the following cities in India:
- Ahmedabad
- Lucknow
- Hyderabad
- Indore
- Gangtok
- Guwahati
- Kochi
- Patna
- Shimla
How to buy a Digital Rupee?
Users can buy the digital Rupee from the Digital Rupee official app or website of the four designated banks mentioned above.
There is currently no accurate information on whether these banks will allow customers to purchase Digital Rupee through their current apps or will introduce a new app or website to deal with Digital Rupee e₹-R.
Can you send a Digital Rupee to a friend?
Yes, this can be shared with a friend or family, just like a cryptocurrency.
However, again, this can only be done on the supported apps from the banks that have been licensed to issue these in India.
The Digital Rupee can be stored just like you store money on a Paytm wallet and PhonePe wallet, which can be used for all sorts of transactions.
Is Digital Rupee e₹-R a legal tender?
The Reserve Bank of India has stated that the Digital Rupee must be considered a legal tender by all institutions (both private and Government) and individuals.
What are the denominations of the Digital Rupee e₹-R?
The Digital Rupee e₹-R will be issued in the same denominations that physical currency and coins are currently issued.
Users can transact with Digital Rupee e₹-R through a digital wallet offered by the participating banks and stored on mobile phones or devices.
What is the difference between Digital Rupee and Physical Rupee?
Digital Rupee can be used similarly to a physical rupee in most places like hotels, travel, grocery stores, and movies.
You can do anything with digital money, like buying shares, bonds, and stocks.
However, the only drawback of the Digital Rupee is that you cannot withdraw it as physical currency.
Can we convert Digital Rupee into cash?
The Indian Digital Rupee can be converted into cash via commercial banks. (Official Banks who have the rights to issue Digital Rupees)
Note: All the banks in India do not have the right to issue Digital Rupee.
Can Digital Rupee earn Interest?
If you have a savings account or fixed deposit money in your bank, you can earn Interest out of it, but if you have a Digital Rupee, you can not.
Digital Rupee will not earn any interest, and the value will remain constant.
FAQ’s
What is the logo of Digital Rupee?
e₹-R
Can we convert the Indian Digital Rupee into cash?
Yes, but only through banks
What is the Interest in Digital Rupee?
No, there is no Interest earned on Digital Rupee
Is Google Pay and Digital Rupee the same?
No, Google Pay is a money transfer app, and Digital Rupee is the Digital Currency that can be transferred as Digital Rupee.
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