Indian Digital Currency: What Is E-Rupee? How To Get It & how it’s different from UPI? Let’s know about it What is a Digital rupee ?? In simple words, digital Rupee or digital currency is a digital form of paper money. The value of the digital Rupee and cash money is the same. For instance: 1 digital Rupee is equal to Re 1 cash. This simply means, unlike cryptocurrency, the value of digital Rupee never fluctuates. Now, coming to how is digital Rupee different from UPI? How will be the digital Rupee different from UPI payments? Digital Rupee in itself will be the underlying payment mode that can be used for digital payments in lieu of currency/cash. “The payment rails like UPI, IMPS etc use the underlying currency/cash to transfer the funds. In this case, it is expected that payment rails will work together with the digital rupee to ensure a seamless payment transaction," said Mihir Gandhi, Partner & Payments Transformation Leader, PwC India. Currently, UPI payments are made using the digital equivalent of existing currency notes. That means every rupee transferred via UPI is backed by physical currency. “The digital rupee will be legal tender in and of itself and need not necessarily be backed up by physical currency," said Sumit Gwalani, Co-Founder, Neobank Fi. The digital rupee is no different from your normal rupee it can be used to do normal transactions like NEFT, UPI. The digital rupee will be operated by RBI and not by bank intermediaries in the case of UPI where each bank has a different UPI handler, said Manoj Dalmia, Founder and Director, Proassetz Exchange Now comes the question how to buy digital rupee 🤔 In order to buy digital Rupee, users will need to go to the official app or website of any of the four designated banks. RBI hasn’t clearly shared the exact process for buying digital Rupee but said that customers will be able to make payments using QR codes displayed at merchant locations and the money will be deducted from bank wallet. Digital Rupee can be used to buy goods and shop from their nearest kirana stores. The transaction in digital Rupee can happen between Person to Person (P2P) and Person to Merchant (P2M). “The e-Rupee would offer features of physical cash like trust, safety, and settlement finality. As in the case of cash, it will not earn any interest and can be converted to other forms of money, like deposits with banks,” RBI said. Hope we will be using E-Rupee soon 🇮🇳 #payments #digital #money