The Reserve Bank of India (RBI) has launched Digital Rupee -- Central Bank Digital Currency (CBDC). The central bank has worked on digital currency for several months after its announcement by Finance Minister.
SBI, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank and HSBC have been selected for this.
There are two types of digital currency – CBDC wholesale i.e. retail and CBDC retail. At present, the digital currency which has been started from today is CBDC wholesale. It will be used by large financial institutions including banks, large non-banking finance companies ie NBFCs and other large transactional institutions. The CBDC will then be issued to retail. People will be able to use it for everyday transactions.
This digital rupee can be kept in an online wallet. There is no need to keep this currency in the pocket like cash. Digital currency will not be like any cryptocurrency.
It has been launched by RBI, so it will be the legal currency in the country. With the help of this digital currency, you can do any transaction or payment or bill deposit. It is just like you transfer money from your bank account and keep it in your digital wallet.
Digital rupee is not cryptocurrency. Therefore, its value will be equal to the rupee. That is, the value of a digital currency of Re 1 will be Rs 1 and the value of a digital currency of Rs 2,000 will be 2000 only. You can convert this digital currency into physical notes or cash whenever you want.
Due to digital currency, the transaction of money will become very easy and it will be very effective for big transactions. The hassle of cheques, drafts, bank account transactions will end. Money will be transferred from mobile in a few seconds. With this, the problem of fake currency will end. This currency will not be destroyed in any way and it can be preserved for a long time. The biggest thing is that the cost of printing paper notes will be saved.
