The Reserve Bank of India has begun issuing digital currency, i.e. starting on Tuesday, November 1st, Indian Rupee. With the completion of its initial pilot test programme, Digital Rupee will now be widely used. Nine banks have been involved in this pilot initiative by the Reserve Bank: State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank, and HSBC.
People's dependence on cash will now be reduced by Digital Rupee, and in certain ways, it will also show to be a good solution for Wholesale Transactions. The transaction is currently carried out via cash, rupees, cheques, or any other financial system. However, digital notes will not replace the need for actual currency. Transactions from wallet to wallet will be possible.
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What distinguishes it from Google Pay, Paytm and UPI e-wallets?
There is a limit on e-wallets, but you can move more money there than in digital currency. However, security will also be a major concern in this, therefore it cannot be overlooked. What if money gets transferred to an incorrect number, comes out as the biggest question. Additionally, RBI will elucidate the specifics of this.
Will currency notes expire?
No, it won't take place. Currently, transferring two lakh to five lakhs is challenging, but it would now get easier. Additionally, efforts are being made to improve cash transmission.
What distinguishes it from online banking?
There are cash-to-cash transactions and a payment fee in net banking. There won't be a charge involved with digital currency.
