Retail digital currency: The Reserve Bank of India will launch retail digital rupee (eRs-R) on Thursday on a pilot basis. The pilot scheme would cover select locations in closed user group (CUG) comprising participating customers and merchants. The eRs-R would be in the form of a digital token that represents legal tender.
Know facts about retail digital currency (eRs-R):
The eRs-R would be in the form of a digital token that represents legal tender.
It would be issued in the same denominations that paper currency and coins are currently issued.
It would be distributed through intermediaries -- banks.
Users will be able to transact with eRs-R through a digital wallet offered by the participating banks and stored on mobile phones/devices.
Transactions can be both person-to-person (P2P) and person-to-merchant (P2M). Payments to merchants can be made using quick response (QR) codes displayed at merchant locations
The eRs-R would offer features of physical cash like trust, safety and settlement finality.
it will not earn any interest and can be converted to other forms of money, like deposits with banks.
The first phase will begin with four banks, namely State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank in four cities across the country.
Eight banks have been identified for phase-wise participation in this pilot, according to the central bank
Four more banks, namely Bank of Baroda, Union Bank of India, HDFC Bank and Kotak Mahindra Bank will join this pilot subsequently
The pilot would initially cover four cities, namely, Mumbai, New Delhi, Bengaluru and Bhubaneswar
It later extend to Ahmedabad, Gangtok, Guwahati, Hyderabad, Indore, Kochi, Lucknow, Patna and Shimla.