E-Rupee Digital Currency to be a Reality in a Month

New Delhi: A pilot program of its e-rupee or Indian digital currency was started by the Reserve Bank of India from Tuesday. Through it India enters the realm of Digital currency transaction. The RBI has allowed nine banks to use Digital Currency for settling secondary-market transactions with government security.

The RBI informed that e-rupee is set to be test launch within a month for retail use in selected locations and selected users will be given access to it.

“It will provide the users the same experience of dealing in currency in digital form, without any risks associated with private cryptocurrencies,” RBI said previously in a concept note.

“Central bank digital currencies, while providing the benefits of virtual currencies, will also ensure consumer protection by not damaging social and economic consequences of private virtual currencies,” it added.

Banks that would be given access to run the pilot initially will be State Bank of India (SBI), Bank of Baroda (BoB), Union Bank of India (UBI), HDFC Bank, ICICI Bank Ltd., Kotak Mahindra Bank, Yes Bank, IDFC First Bank and the Indian Unit of HSBC Holdings Plc.