Page 43 - NIS English, 16-30 November,2022

e-rupee wholesale launch Nation
Now put money in e-wallet
Reserve Bank launches

wholesale e`, retail soon

India is one of the fastest-growing digital economies in the world. The country had done more
than 88.4 billion digital payment transactions in 2021-2022, while the figures for the beginning
quarter of the current financial year show that Indians are now doing an average of 28.8 crore
digital transactions every day. To give impetus to this digital and transparent economy, the
Reserve Bank of India on 1 November launched the country's first digital currency Central Bank
Digital Currency-Wholesale (E-W) pilot project.

ith the launch of the country's digital e₹-W,
the Reserve Bank has become one of the
Wfew central banks in the world to have taken
such an initiative. As a pilot project, it will be used
for the settlement of government securities. Based
on the success of this pilot project, pilot projects for
other large-amount transactions and cross-border
payments will also be taken up in the future. Union
Finance Minister Nirmala Sitharaman mentioned The digital economy will get a boost.
about digital currency in the budget on 1 February. RBI will control it. Will open new doors
Digital e₹ is different from the physical rupee of opportunities in the field of FinTech.
and UPI. The physical currency has to be printed by The burden of printing, handling, and
the government, the user has to keep it with him. distributing the cash will also be reduced.
Similarly, for UPI transactions, money is required -Narendra Modi, Prime Minister.
to be kept in a bank account, whereas digital e₹ is
not printed and there is no possibility of it getting The physical currency is kept in the pocket in the
damaged. It can be stored in the e-wallet. However, form of notes whereas the e-rupee will remain in
for transactions with digital e₹, money will have to the wallet.
be deposited in the bank account or in the form of In beginning, these banks will be included
physical currency. The pilot project includes the State Bank of India,
Retail e₹ will be launched from select locations Bank of Baroda, Union Bank of India, HDFC Bank,
RBI has announced that soon a pilot project of ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC
retail e₹ will also be launched. It will first start from First Bank, and HSBC Bank.
select locations in closed user groups comprising Benefits of e₹
customers and merchants Digital e₹ is the digital form of the physical rupee.
Separate e₹ for Wholesale and Retail Digital is risk-free and can exchange e₹ with
RBI Central Bank Digital Currency (CBDC) will be a physical currency.
separate currency for both wholesale and retail. It Dependency on cash will decrease, and the cost
is based on Blockchain technology. of printing notes will be saved.
The wholesale currency will be used by financial It will also facilitate the creation of a global digital
institutions such as the banking system. payment system.
Retail e-rupee will be used by people for daily It will help in getting rid of the problem of fake
needs in transactions.
currency.

New India Samachar November 16-30, 2022 41