RBI Digital Rupee has been the most trending words from the moment RBI (Reserve Bank of India) announced the launch of Digital Rupee in 2017. Most of us have many doubts regarding the rupee digital currency such as what is digital rupee? How to buy digital rupee offered by RBI? Where to buy digital rupee coins? And what is the digital rupee price?
In this article, we have discussed everything about digital Indian rupee to answer the most common questions about RBI Digital Rupee.
What is RBI Digital Rupee?
The digital rupee or Central Bank Digital Currency (CBDC) offered by RBI is a virtual form of Indian Rupee. It is set to bolster India’s digital economy and enhance financial inclusion by making the financial transactions faster, easier and cheaper.
The launch of Digital Rupee is the biggest step towards digital transformation in India and the experts predict that this will change the way businesses operate in India.
Where to Buy RBI Digital Rupee?
The Indian Government has partnered with nine banks to allow the people to buy digital rupee. Anyone can buy Indian digital rupee in wholesale from these nine banks:
- State Bank of India
- Bank of Baroda
- Union Bank of India
- HDFC Bank
- ICICI Bank
- Kotak Mahindra Bank
- YES Bank
- IDFC First Bank
What is the Difference Between RBI Rupee Currency Notes and Digital Rupee?
RBI Digital Rupee is just similar to the normal RBI currency notes, but it won’t be physically tangible like a physical paper currency. This digital rupee is much cheaper than the physical rupee banknotes. Users can make financial transactions with digital rupee seamlessly while saving on transaction costs.
While launching the digital rupay – Central Bank Digital Currency, RBI said that it is the legal tender issued by the RBI in the electronic form. This digital currency will be valid the same as the physical rupee banknote and it can be exchangeable with the fiat currency.
The digital rupee can be easily convertible against the physical currency (rupee). It can be easily exchanged for the physical rupee equivalent.
The online transactions can be done just similar to the UPI, NEFT and other digital financial transactions. But, the only difference is that the user needs to have a valid bank account to make the UPI transactions whereas digital rupee doesn’t require a bank account to make transactions.
What is the full form of CBDC?
CBDC refers to the Central Bank Digital Currency.
What are the benefits of Digital Rupee?
As per the RBI, Indian digital rupay will bolster the Indian’s digital economy. It makes the payment systems more efficient and enhances financial inclusion. Digital currency rupee even reduces the costs associated with physical currency printing, storing and maintenance costs. As the money is available digitally, there is no scope for physical damage or loss and it will helps users to mitigate the volatility risks of cryptocurrency like Bitcoins.
The Digital Rupee can be used to make digital payments through UPI, NEFT, RTGS, IMPS, debit/credit cards etc, but so far for specific purposes.
- Unified Payments Interface (UPI)
- National Electronic Funds Transfer (NEFT)
- Real Time Gross Settlement (RTGS)
- Immediate Payment Service (IMPS)
- Bharat Bill Payment System (BBPS)
- National Electronic Toll Collection (NETC)
- Debit/credit cards etc.
Finway FSC CEO & Founder Rachit Chawla said, “The digital currencies introduced by the government are expected to have significant usage in large payments and settlements. In the initial phase, the digital rupee will be used for the government securities such as Indian Government bonds and soon the RBI will allow the users to use this online rupee to make retail transactions.
How to buy Digital Rupee?
Users can buy Digital Rupee in wholesale from the 9 banks that have partnered with the RBI to deliver online rupee. The bank list includes Bank of Baroda, State Bank of India, HDFC Bank, Union Bank of India, ICICI Bank, Kotak Mahindra Bank, IDFC First Bank,YES Bank and HSBC.