What exactly is a digital rupee?
The RBI has created a central bank digital currency called the digital rupee, sometimes known as the e-rupee.
The only difference between it and the physical money you carry in your wallet is that the e-rupee is stored electronically in a digital wallet that is under the RBI's control.
An innovative digital solution called "e-RUPI" has been introduced by the National Payments Corporation of India (NPCI) in collaboration with the Department of Financial Services (DFS), the National Health Authority (NHA), the Ministry of Health and Family Welfare (MoHFW), and partner banks.
This contactless e-RUPI is simple, secure, and safe because it entirely protects the beneficiaries' personal information.
WORKINGS OF DIGITAL E-RUPI …
The beneficiary receives an e-RUPI digital voucher in the form of an SMS or QR code on his mobile device.
Beneficiaries can redeem it using a one-time contactless, cashless voucher-based payment method without a card, a digital wallet, or online banking access.
e-RUPI differs from the digital money that the Reserve Bank of India is considering.
ADVANTAGES …
The fact that e-RUPI works on a basic phone without an internet connection is its best feature.
A cryptocurrency is not the digital rupee …