All about E – Rupi – The New Digital Payment Instrument.
Digital E- Rupi is a one-time cashless, contactless voucher-based mode of payment which can be utilized by the beneficiaries to redeem it without the use of a card, digital payments app, or even internet banking access.
E- Rupi is different from the digital currency that is contemplated by the Reserve Bank of India.
It’s the first time in our country that the retail transactions of digital currency (E – Rupi) have started. The Reserve Bank of India has sanctioned Rs. 1.71 crores to four banks for the pilot transactions. The transactions are going to be conducted among the selected groups in four cities: Mumbai, Delhi, Bengaluru and Bhubaneswar, led by SBI, ICICI Bank, Yes Bank and IDFC Fest Bank.
More (digital rupees) amount will be sanctioned keeping in mind the demand of small customers and banks’ liquidity. The transactions have started between friends and between traders and customers. This will include everything from street vendors to large traders. Food delivery apps will also begin to simply accept digital rupees in the coming days.
It aims to engage 50,000 merchants and consumers in transactions within days. In the second phase or part, four more banks are going to be included within two to three weeks. And therefore the new joiners are the Bank of Baroda, Union Bank of India, HDFC Bank and Kotak Mahindra Bank. Along with this, the deal will be extended to Ahmedabad, Gangtok, Guwahati, Hyderabad, Indore, Kochi, Lucknow, Patna and Shimla.
All that is required for this is, first of all, we need to download the wallet app which is prepared by the bank on smartphones therefore the digital currency can be collected from the banks and such digital rupees can be transferred to individuals or traders. Merchants can transfer money through QR Code. The QR Code for which will be displayed in the shops or outlets.
The transactions are currently conducted only between selected groups. The transactions will take place in the form of a digital token with the same value as the rupees in the market. A printed rupee and a coin in the metallic form are the only difference.
Advantage of Digital E – Rupi.
The Beneficiary needn’t be required to have a bank account, because Digital E – Rupi ensures an easy, contactless two-step redemption method or process that doesn’t need to share one’s personal details.
One of the best parts of this is it operates on a basic phone without an Internet connection