‘Remove Bapu’s image from notes too,’ Mahatma Gandhi’s kin fumes

Earlier this month, the RBI launched the first pilot project for the digital rupee in four Indian cities–Mumbai, New Delhi, Bengaluru, and Bhubaneswar. Since, RBI is shifting focus from physical cash to digital rupee/currency/e-rupee,  the essence of a note may gradually vanish with time. Thus, the central bank digital currency (CBDC) may shape India’s cash-dependent economy.

The eRupee is in the form of a digital token that represents legal tender and would offer “features of physical cash like trust, safety, and settlement finality”, according to the RBI.

Digital rupee has been created by the RBI using the latest technology and digitally securely issued to the banks.

Customers will be able to place the request for digital rupee through the digital wallet in their mobile app provided by the banks and the requested amount would get credited to their digital rupee wallets.

RBI Governor Shaktikanta Das has said several times that digital money is the future, and added that the CBDC is different from having a UPI wallet. Digital currency issued by the central bank is the RBI’s liability whereas UPI is a means of payment and any transaction through UPI is the respective bank’s liability.

It has certain unique features like the ability to return the money in 24 hours as well. Besides, it will also boost innovation in the cross-border payment space.

Some of the early CBDC experimenters like China, Sweden, and South Korea have already moved away from physical cash to a large extent.

As per the central bank digital currency (CBDC) tracker, almost 105 countries representing 95% of the world’s GDP have taken steps to inculcate digital currency in their ecosystem.

Around 50 countries are at the advanced phase of exploration to launch the digital currency, while 10 countries have fully launched the digital currency, he said at an event organised by PHD Chambers of Commerce and Industry (PHDCCI).