e-Rupee

About e-rupee: 

• The e-rupee, or the digital rupee, is a digital currency issued by the RBI.
• The digital rupee was launched on a pilot basis in December 2022. At the time, the currency was offered by a select group of public and private banks in a few major cities and could be used for both person-to-person and person-to-merchant transactions.
• It is aimed at creating an additional option for using money. The digital rupee is available entirely in electronic form and does not leave a computer network.
• It is like banknotes issued by the RBI and is a legal tender that can be used to make transactions. The only difference is that they can only be transacted online.
• The digital rupee in users’ wallets does not attract interest payments from the central bank. However, deposits held in banks can be converted into digital rupees and vice versa for ease of use.
• RBI has demarcated the digital rupee into two broad categories: general purpose (retail) and wholesale.
  • This demarcation is based on the usage and the functions performed by the digital rupee and considering the different levels of accessibility.

Q1: What is Fiat Money?

Fiat money is a currency that lacks intrinsic value and is established as a legal tender by government regulation.

Source: What is e-rupee and why do Google Pay, PhonePe want to join RBI’s digital rupee project?

‹ ›