DIGITAL RUPEE-how to buy digital rupee

In this blog what is digital rupee, Digital rupee, e-Rupee, cryptocurrency, CBDC digital Rupee, how to buy digital rupee, how digital rupee works

DIGITAL RUPEE-how to buy digital rupee

How CBDC or Digital Rupee Work?

The Reserve Bank of India, along with five leading banks - State Bank of India ICICI Bank IDFC first, bank HDFC bank - started a new pilot project which we call Central Bank Digital Currency (CBDC). This digital currency will be India's own currency called Digital Rupee or e-rupee.

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Digital rupee is a digital currency issued by the Reserve Bank of India (RBI), the central bank of India, as an electronic form of the Indian rupee. It is designed to be a secure and convenient means of making transactions and can be used to make payments, transfer funds, and carry out other financial transactions online or through a mobile device. Digital rupee is backed by the RBI and is intended to be used alongside physical cash, rather than replacing it. It is expected to increase the efficiency and speed of financial transactions, and reduce the use of cash in the economy. However, the implementation of digital rupee is still in the planning stages and it is not yet clear when it will be introduced.

The following 9 banks have been designated to settle secondary market transactions in the wholesale category.These banks are- State Bank of India(SBI), Bank of Baroda(BOB), Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank, HSBC Bank.
RBI will launch its Retail version of Digital rupees very soon, which we can use in our market for regular transactions and parches of goods and services.

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What is Digital Rupee

Central Bank Digital Currency i.e. CBDC s a legal tender issued by the Reserve Bank of India, which we will be known as Digital Rupee and E Rupee. CBDC is the same as a sovereign currency and is exchangeable one-to-one at par with the fiat currency.

Features of Digital Rupee or e-Rupee

• CBDC i.e. Digital Rupee will be issued like a main currency of RBI
• The CBDC will appear as a liability on the balance sheet of the Reserve Bank of India
• Digital Rupee will be accepted by every type of payment medium as legal tender and a safe store of value by all citizens, enterprises, and government agencies.
• Digital Rupee known as CBDC - It can be easily converted into cash money in our banks
• Digital currency will be like a fungible legal tender that does not need a bank to hold it
• Digital Rupee i.e. CBDC can reduce the cost of transactions and money issuance by central bank.
  

TYPES OF DIGITAL RUPEE or E-RUPEE

The Digital rupee or e-Rupee can be classified into two types-

• General purpose or retail Digital Rupee(CBDC-R)
• Wholesale or Digital rupee-(CBDC-W) 

Retail cbdc or Digital rupee can be used by all the private sector and non financial consumers and businesses where as the wholesale cbdc are design for restricted access to selected financial institutions.

Retail CBDC or Retail Digital rupee is an electronic version of cash primarily meant for retail transaction where as wholesale digital rupees designed for restricted access to selected financial institutions.

The retail digital rupee can provide safe money for payment and settlement as it is direct liability of the central. Where is the wholesale CBDC has potential to transform settlement system of financial transaction and make them efficient more and secure.

Difference between Retail Digital rupee (CBDC-R) and Wholesale Digital rupee (CBDC-W)

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• Retail Digital rupee (CBDC-R)
• Retail CBDC can be used by all including the private sector, non-financial consumers, and businesses.
  
  Retail Digital rupee is an electronic version of cash primarily meant for retail transactions
  
  Retail Digital rupee is an electronic version of cash primarily meant for retail transactions
  
  Retail Digital rupee can provide access to safe money for payment and settlement as it is a direct liability of the central bank.
• Wholesale Digital rupee (CBDC-W)
• Wholesale Digital rupee is designed for restricted access to select financial institutions.
  
  wholesale Digital rupee  iis designed for restricted access to select financial institutions.
  
  The wholesale CBDC or Digital rupee is designed for the settlement of inter-bank transfers and related wholesale transactions
  
  Wholesale CBDC has the potential to transform settlement systems for financial transactions and make them more efficient and secure
  

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Digital rupee vs cryptocurrency

FAQ

• How is digital rupee different from UPI?
• e-Rupee itself is a currency in digital form whereas UPI is online platform by which money transactions happens.
  
  
• How to buy digital rupee?
• The digital rupee can be bought from the four banks as licensed by RBI.these Banks are State Bank of India,Yes Bank,ICICI Bank and IDFC First Bank. The RBI may include some other banks to issue digital rupee in future.
  
  
• How digital rupee will be different from cryptocurrency?
• In Cryptocurrency , there is no regulators to distribution,issue and maintain,Whereas case of in Digital Rupee ,it is a legal tender with RBI as a regulator.
  
  
• Which bank will introduce our digital rupees in India?
• The Reserve Bank of India will launch the first pilot for retail digital Rupee.This pilot of digital rupee would cover selected locations in user groups.
  
  
• Can digital currency be converted to cash?
• It can be converted into cash by using third party exchange broker.

DIGITAL RUPEE-how to buy digital rupee