How different is E-Rupee from online payment; This is the difference between UPI, NEFT, RTGS

Reserve Bank of India ie RBI Recently launched the pilot of its digital form. This is India’s own digital currency. Central Bank Digital Currency (CBDC) is a legal tender, which is issued by the central bank in digital form. The digital form is just like a simple note or coin, which we use on a daily basis. It is only in digital form. Now the question arises whether RBI’s Retail Digital Unified Payments Interface (UPI)upiHow is it different from National Electronics Funds Transfer (NEFT) and Real Time Gross Settlement (RTGS). Let’s understand it.

E-Rupee is legal tender, not a mode of payment

E-Rupee is the electronic form of sovereign currency. Whereas, UPI applications like Google Pay, Phone Pay, NEFT and RTGS are the means of fund transfer.

Digital currency is not limited to currency only

Keep in mind that the use of e-Rupee is not limited to payments only. Because it is currency. Digital form is a unit of account. It is a store of value. Apart from this, all those things which are present for currency can be added in e-Rupee. This can be tested in future. E-Rupee can be used for other things besides payment transactions in future. Like lending, trade finance etc.

No Bank Intermediate in E-Rupee

Digital transaction in UPI or NEFT or RTGS has to go through the bank. Whereas, in case of E-Rupee, money is transferred from one wallet to another. A few days ago, RBI Governor Shaktikanta Das said in a press conference that a bank is an intermediary in any UPI transaction. He had said that in CBDC, as you go to the bank for paper currency, take it out and keep it in your wallet. Then go to the shop and pay from the wallet. Similarly, here too you can withdraw the digital currency and keep it in your wallet. Wallet Here will be your mobile phone. You will pay with that. Bank will not be involved in this.

PAN will be required after some limit in E-Rupee

At present, a person doing a cash transaction has to submit his PAN after a certain threshold. This rule will also apply to the digital form. There is no difference between paper currency and digital currency. Income tax department asks for PAN number after certain limit for cash payment. The same rules will apply in the case of CBDC as well. Because both are currency.