Last Updated: January 20, 2023, 10:42 IST
Speaking at an event organised by the Indian Merchants’ Chamber, Anuj Ranjan, the chief general manager at the RBI’s fintech department, said that at present eRupee cannot be transformed into cash and vice-versa. He further said that the eRupee will be issued against bank deposits only by the Reserve Bank of India (RBI). It will allow digital currency conversion into cash but at present, this facility cannot be availed.
As reported by The Times Of India, the pilot project has progressed quite satisfactorily in a closed-user group and the number of users is gradually rising. Anuj Ranjan said that the central bank will bear costs relating to eRupee as it is part of RBI’s liabilities. Yes Bank has made a digital wallet available for its customers via Apple App Store and Google Play Store. Other companies like Reliance Retail, Natural Ice Cream and oil marketing companies have so far signed up to accept payments in eRupee.
Circling back to digital currencies, countries like China, India, Nigeria and the Bahamas, have already rolled out digital currencies. On the other hand, Sweden and Japan will roll out their digital currencies soon. The United States is still studying the issue and conducting trials of various technologies to enable a digital currency. Meanwhile, Fed chair Jerome Powell has indicated the U.S. central bank has no plans to create one and won’t do so without direction from Congress.
Other countries are still engrossed in debates about the necessity, utility and potential pros and cons of digital currencies. There are two types of CBDC — one used by the general public like fiat income and the other for central banks to transfer money to commercial banks.
One such currency is the digital Yuan of China, which can be used by regular Chinese citizens through well-established and well-linked digital payment platforms like Alipay and WeChat Pay. India’s trial with a digital rupee, which might allow people to conduct transactions without using traditional banks, is an equally daring attempt.
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