How to Buy Digital Rupee in India? List of Participating Banks

India Digital Rupee: India's virtual version of the digital rupee, which can be exchanged for any other fiat currency, was introduced on December 1.
RBI Digital Rupee Currency
RBI Digital Rupee Currency

On December 1, the digital rupee, or e-rupee, will launch its first pilot program for retail use. According to RBI, the closed user group (CUG), which is made up of participating customers and retailers, would be the only group to initially benefit from the pilot.

What is Digital Rupee?

The Indian Rupee, a fiat currency, is represented digitally as the "Digital Rupee." It is comparable to a paper-based fiat currency that can be exchanged for any other fiat currency.

How to buy a Digital Rupee?

This fiscal year, the Reserve Bank of India (RBI) will launch the Digital Rupee. Users will be able to exchange digital rupees through a digital wallet provided by the participating banks and kept on mobile phones or other devices, according to the central bank.

The central bank has confirmed that both person-to-person (P2P) and person-to-merchant transactions in digital rupee are possible (P2M). Users will be able to conduct online-like transactions using QR codes displayed at merchant locations to pay with an e-Rupee.

Features of Digital Rupee

The benefits of CBDC are comparable to those of cryptocurrencies and other electronic forms of payment.

Other CBDC characteristics include the requirement that all individuals, businesses, and governmental organizations accept digital cash as a form of payment, legal tender, and a secure reserve of value.

  1. It is simple to convert it into cash and commercial bank money.
  2. The holders or consumers of the digital rupee will be able to use it without a bank account because it will be a flexible legal tender.
  3. A digital rupee cannot be torn, burned, or otherwise physically harmed.
  4. Digital rupees are irreplaceable.
  5. The lifeline of a digital form of currency will last forever in contrast to paper money.
  6. The digital rupee will be governed by a central authority, which has the significant benefit of lowering the risk of volatility that many people fear.

List of all Participating banks

RBI, the Central Bank issued a press release with names of banks for participation in the digital rupee’s pilot. And the nine banks are:

  • State Bank of India
  • Bank of Baroda
  • Union Bank of India
  • HDFC Bank
  • ICICI Bank
  • Kotak Mahindra Bank
  • Yes Bank
  • IDFC First Bank

Mumbai, Delhi, Bengaluru, and Bhubaneswar would be the first four cities the pilot under the Digital Rupee release would cover. Later, Ahmedabad, Gangtok, Guwahati, Hyderabad, Indore, Kochi, Lucknow, Patna, and Shimla would be added.

There is no estimated date for when the service will be made available in all cities and at all banks, though.

Digital Rupee: All you need to know!

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