comscore E-Rupee digital currency announced: 5 key things to know
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E-Rupee digital currency announced: 5 key things to know

The Reserve Bank of India (RBI) has announced the launch of the pilot programme to introduce the e-Rupee or the Digital Rupee in India.

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The Reserve Bank of India Friday announced that the pilot launch of the e-Rupee, the digital counterpart of the Indian Rupee, will begin soon. The upcoming e-Rupee will be useful in specific cases, which will be a part of the pilot programme. The central bank has floated a concept note on the Central Bank Digital Currency (CBDC) to discuss key considerations for the digital Rupee. Also Read - Digital Rupee pilot for retail segment to commence on December 1

“As the extent and scope of such pilot launches expand, RBI will continue to communicate about the specific features and benefits of e-rupee, from time to time,” RBI noted in the concept note. E-rupee was first announced by Finance Minister Nirmala Sitharaman during her Budget 2022 speech in February as a legal alternative to the digital currency. As the pilot programme for the launch of the e-Rupee commences in India, here are five key things to know: Also Read - RBI launches the first pilot of Digital Rupee (e₹) for the wholesale segment: All details here

  1. E-rupee will be a legal digital currency issued and managed by the Reserve Bank of India. The e-Rupee is a Central Bank Digital Currency (CBDC) that has the same trade value as a sovereign currency. It will be exchangeable with the fiat currency on a one-on-one basis, according to RBI’s concept note.
  2. The Digital Rupee or e-Rupee will align with India’s monetary policy, which means its transactions will fall under the purview of RBI’s rules, such as deductions if any. It will appear as a liability on the central bank’s balance sheet.
  3. The central bank has noted that the e-Rupee will be recognised as a legal tender and a medium of payment. Citizens, enterprises, and government bodies will also be able to store the Digital Rupee just like the bank notes.
  4. Digital Rupee will be convertible against physical money and cash from banks. It will likely lower the cost of issuance of money and transactions since it eliminates the need for a physical form to exist.
  5. The Reserve Bank has said that the e-Rupee will act as a fungible legal tender for which holders would not need to have a bank account.
Also Read - Digital Rupee trials to start from Tuesday, November 1
  • Published Date: October 7, 2022 7:52 PM IST
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