What is e-rupee?
The e-rupee, also known as the digital rupee, is a form of digital currency issued by the Reserve Bank of India (RBI).
It exists entirely in electronic form and is used for making transactions online, aiming to provide an additional option for using money in the digital age.
Is there any difference between e-rupee and banknotes?
While the e-rupee is legal tender like banknotes and is issued by the RBI, it differs in that it is entirely digital and cannot be used in physical form.
The digital rupee does not accrue interest, unlike bank deposits, which can earn interest.
Bank deposits can be converted into e-rupees and vice versa, offering flexibility for users.
When was the digital rupee launched, and why was it needed?
The digital rupee was launched on a pilot basis in December 2022.
It was introduced to serve as an alternative to cryptocurrencies
The RBI aimed to enhance transparency in transactions and reduce the costs associated with printing and handling physical money.
Initially, it was available for transactions between individuals and businesses in select cities and was expected to provide a modern, efficient payment option.
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