Digital Rupee was a hit, on the very first day of launch, the transaction of Rs 275 crores was bumper!

RBI's digital currency CBDC has a happl start on Tuesday 2-10-2022. As a pilot project, earlier only in the wholesale segment, banks have been allowed to use this currency for transactions of government securities i.e. government securities. 9 banks are involved in this pilot project. Many of these banks had done 48 transactions involving government bonds, with a total value of Rs 275 crore, using digital virtual currency on the very first day itself.

Digital currency will be a superhit!

Digital currency is currently being used in India only as a pilot project. This pilot project will be carried forward in several phases and after removing all the flaws, everyone can be allowed to use this currency. Initially, the 9 banks that have been approved to participate in this include State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank and HSBC Bank. A total of 275 crore transactions on the first day are being said to be a good start and it is estimated that the digital currency will be able to establish its place in the coming days. At the same time, the purpose with which the government wants to implement it is also very likely to be fulfilled.

RBI had announced to bring pilot in October
In October, the RBI announced that it would soon launch a pilot project for the exclusive use of digital currency. Apart from this, RBI had also issued a concept note on CBDC which was brought with the aim of creating awareness about digital currency. The first announcement about CBDC was made by Finance Minister Nirmala Sitharaman in her budget speech earlier this year. He had given this information that RBI will bring e-rupee this year. This legitimate mode of payment can also be converted into a bank account or cash.

How CBDC Works
Coming to the pilot project, each participating bank has a digital currency account named CBDC account. The responsibility of maintaining these accounts rests with the RBI. Banks will have to first transfer money from their account to this account. For example, if a bank buys bonds from another bank, the money will be deducted from the CBDC account of the first bank and the amount will reach the CBDC account of the second bank. Along with this, digital settlement will also take place between the two banks on the same day.

technology will take time to develop
If this pilot project is successful, RBI may also allow the use of CBDC in other wholesale transactions. It is being said that the cryptography technology that is currently being used for digital transactions may take time to develop. If everything goes according to plan and the pilot project is successful, then soon there is an intention to launch a pilot project on the use of CBDC in retail transactions as well. Cryptocurrencies may face a severe setback once this currency enters retail transactions as RBI has always been opposed to it and has seen the intention to introduce e-rupee as an option to deal with the menace of cryptocurrency somewhere. He is going.

Preparation to link Digital Rupee with UPI

After coming into retail use, people will be able to keep E-Rupee in the mobile wallet. This digital form can be used for any payment. The CBDC will be reflected in the account in electronic form and can also be exchanged with currency notes. There is also a plan to link Digital Rupee with UPI. With the introduction of digital currency, the cost of transactions for common people and business with the government will be reduced.