E-RUPI will now encourage digital payments without bank accounts, these facilities will be available

Reserve Bank of India Has launched its digital currency Digital Rupee on 1 November. The Central Bank (RBI) has just introduced a digital rupee (Rs) for wholesale transactions.E-Rupee) is issued. Which has been started as a pilot project. The digital rupee will be used to settle secondary market transactions in government securities. Industry stakeholders say a central bank digital currency (CBDC) can play a key role in providing access to digital payments without the need for a bank account and access will be facilitated by a digital wallet issued by a central bank. Since its announcement in the Union Budget for FY 2013, the rollout of e-rupee has been one of the most sought-after developments.

Jaya Vaidyanathan, CEO, BCT Digital said that the launch of the Digital Rupee pilot project by RBI is a good step towards digital payments. The initiative has been rolled out in the low-volume, high-value wholesale (interbank) segment, where learnings will be used to make reliable, made-to-scale retail payments. The pilot project involves nine banks, including SBI, Bank of Baroda, HDFC Bank, Yes Bank, Kotak Mahindra Bank and ICICI Bank, to settle secondary market transactions in government securities, thereby reducing settlement risk and transaction costs.

It added that the completion of the rollout of Digital Rupee is expected to boost the payment and financial needs of a wide range of users while ensuring transparency and low operating costs, and RBI for innovation in creating a future ready digital ecosystem. has endorsed.

Financial inclusion will improve

India is one of the most technologically developed currencies in the world, and e-rupee will put it at the forefront of true digital payments and improve financial inclusion. The popularity of a digital rupee backed by RBI will help bring legitimacy to other private digital currency like crypto. However, clarity on how it will be implemented will have to wait. This is a positive step towards the acceptance of digital currency.

According to Arjun Khazanchi, Co-Founder and Chief Legal and Strategy Officer at Ruba, Finance, CBDC is an ambitious project where the government is quietly working to disrupt the financial system that is traditionally opaque, cash-dependent and highly inefficient. . The first case is going to be used for market transactions in government securities. The move can also boost liquidity, remove inefficient and unnecessary processes while reducing transaction costs. This will also increase transparency among the participants.

Will help in maintaining the legal role

Through this, the government is also expected to be able to reduce settlement risk which is one of the biggest use cases for blockchain in financial markets. There are some apprehensions about the privacy and direct control of the government over CBDCs. CBDCs could help maintain the legal role of digital payments publicly in monetary policy, thereby ensuring the role of central banks in protecting financial stability in their markets. It provides a public, digital alternative to cash and private digital money.

E-rupee can play an important role

According to Manish Sharma, founding partner, Centricity Wealth Tech, e-rupee CBDCs can play an important role in providing access to digital payments without the need for a bank account. It added that by involving commercial banks and other private stakeholders (technology enabled, traders, users) in the launch process, central banks will also foster a wider sense of ownership, manage the fear of displacement, and increase the chances of success. Will increase Paymi India CEO and Founder Mahesh Shukla says that the RBI is hoping to focus on other bulk transactions and cross-border payments, which can be projected as a move to make it easier for the general public.

English News Headline , E-Rupee Now digital payments will get a boost without bank accounts