RBI launches retail digital rupee on December 1 for common people

Category : Business and economics Published on: December 01 2022

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The Reserve Bank of India (RBI) has launched its first pilot project for retail digital rupee (e₹-R) on 1 December.
The digital rupee will be distributed through banks and users will be able to transact with it through a digital wallet offered by the participating banks and stored on mobile phones/devices.
However, as in the case of cash, the digital currency will not earn any interest and can be converted to other forms of money, like deposits with banks.
RBI has identified eight banks for phase-wise participation in this pilot. These include State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank. The four banks will participate in the first phase across 4 cities in the country.
Four more banks, namely, Bank of Baroda, Union Bank of India, HDFC Bank and Kotak Mahindra Bank will join this pilot subsequently.