The Digital Rupee is also called ‘e-Rupee’ and is based on blockchain technology. It is a completely legal tender that is issued and recognized by the Government of India. Here’s everything that you should know about e-Rupee, and how you can use it to send and receive digital money on your smartphone. e-Rupee is the digital version of the Indian Rupee. It uses the same concept of currency denomination in the form of notes and coins but in a digital format. The value of one e-rupee is the same as the regular rupee.

e-Rupee is issued by RBI in denominations of 50 paise, 1 rupee, and notes of Rs 2, 5, 10, 20, 50, 100, 200, 500, and 2000. Each e-rupee has a unique serial number similar to physical notes. These digital currencies are stored in a local wallet on the user’s smartphone. Users can exchange e-rupees just like normal cash, using the digital rupee application of their respective bank. Since these transactions happen on a wallet level, they won’t reflect in your bank account statement.

As of now, e-rupee is only available to a limited set of users who have received an invitation from their bank for the plot program testing. RBI says that e-Rupee will soon be rolled out to all users across India. e-Rupee should not be confused with e-RUPI. e-Rupee is the digital version of the Indian Rupee, while e-RUPI is a prepaid voucher which is issued by the Indian Government for direct benefit transfer schemes. It is important to note that the official name of e-Rupee is actually ‘Digital Rupee’ as per RBI.

As the pilot program progresses, more banks are expected to join the list and release support for e-rupee. Once you have downloaded the respective Digital Rupee app for your bank, follow these steps to initiate the setup.

1) Open the Digital Rupee app, and select the SIM card linked to your bank account.
2) Set a 6-digit PIN which will be used for your e-Rupee transactions.
3) Verify and select the bank account shown in the app.

Your initial setup for e-rupee is now complete. An on-device wallet will be created on your smartphone which will store the digital rupee currency. Here’s how you can add funds to your e-rupee wallet and use them for transactions.

The usage of the e-rupee is similar to UPI, where the sender and receiver both need to be registered on a select platform to exchange money. However, they are vastly different from each other. UPI operates at a bank account level, where funds are directly transferred from the sender’s bank to the receiver’s bank. However, in this case, if either one of the sender’s or receiver’s banks is facing downtime, the transaction will not be complete.

e-Rupee is based on a blockchain network, similar to cryptocurrencies like Bitcoin and Ethereum. Here, the blockchain network is controlled and maintained by RBI. Hence, e-rupee transactions are not dependent on the availability of bank servers. Unless the blockchain network is down, the e-rupee system will continue to remain functional. It is worth noting that transactions done using e-rupee are completely legal and recognized by RBI. Apart from the backend technology, the monetary exchange value done by using the e-rupee is the same as money exchanged using UPI, RTGS, NEFT, or any other means. 1 eRupee = 1 Indian Rupee.

Advantages of e-Rupee
1) e-Rupee is based on the blockchain network, which is highly secured and almost impossible to hack.
2) e-Rupee is free to use and does not have any extra or hidden charges.
The value of the e-Rupee will always remain the same as the regular Indian Rupee.
3) e-Rupee is a centralized currency, controlled and maintained by the Reserve Bank of India.
4) Each e-Rupee has a unique serial number registered on the blockchain, hence faking or counterfeiting the e-Rupee is not possible.

Disadvantages of e-Rupee
1) UPI allows you to send funds directly to a bank account, even if the receiver is not registered on UPI. This is NOT possible on e-Rupee as both sender and receiver need an e-Rupee wallet.
2) The adoption rate of e-Rupee is expected to be slow, given the massive volume of UPI.
3) e-Rupee is still in its pilot program and is running slightly behind schedule for its public rollout, which was expected earlier this year.

The Digital Rupee or e-Rupee is a huge technological leap for the Indian Rupee as it is based on the blockchain network. The Government of India is expecting more users to adopt the e-rupee, which will reduce the load on cash circulation in the country.

#akarshpj96 #digitalcurrency #digitalcurrencies #erupee #digitalrupee #upi #crypto #cryptocurrency #blockchain #rbi #india #money #currency #legaltender

свернуть