RBI launches digital currency in 4 states: See how to purchase and use it?

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RBI launches digital currency in 4 states: See how to purchase and use it? (Image: Pixabay)
RBI launches digital currency in 4 states: See how to purchase and use it? (Image: Pixabay)

New Delhi : The Reserve Bank of India has launched the official digital token called the digital rupee in 4 cities. It will be made available for purchase and sale from December 1 onwards through select banks in select cities. Earlier this week, there is a Bank of India had announced that it will be sold through 4 banks – State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank.

The State Bank of India has also clarified that the testing will begin in Mumbai, New Delhi, Bangalore and Bhubaneswar and later it will be extended to Ahmedabad, Gangtok, Guwahati, Hyderabad, Indore, Kochi, Lucknow, Patna and Shimla.

10 things you must know about digital rupee:

1: RBI has cleared that the e-Rupee will be available in the form of digital token that represent legal tender.

2: The digital rupee can be used for person to person (P2P) and person to merchant (P2M) transactions. The payment to merchants can be made through QR code displayed on merchant locations.

3: The RBI has claimed that e-Rupee will be as safe as the cash transactions and settlement finality.

4: Also, the value of e-Rupee remains the same and it is not volatile as a cryptocurrency.

5: The first phase of rupee will begin with 4 banks – State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank in 4 cities across the country.

6: The digital rupee will only be distributed through intermediaries, which is bank in this case.

7: The transactions can be made through digital wallet offered by participating banks and stored on mobile phone devices.

8: Like cash, there will be no interest on this amount and it can be converted into other forms of money, like deposit with banks.

9: The prime reason behind digital currencies to make do transactions online.

10: After testing the first phase, it will be extended to second phase in more cities.