Digital Currency: The Reserve Bank of India has started digital currency i.e. Indian Rupee from Tuesday 1 November. Digital Rupee will now be widely used through its first pilot test program. For this, the Reserve Bank has included nine banks – 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 – under this pilot project.
Through Digital Rupee, people’s dependence on cash will now be reduced and in a way it will also prove to be a good option for Wholesale Transaction. Till now the transaction is done through currency, rupee or check or through any banking system. But no hard currency will be required in digital notes. You will be able to do wallet to wallet transactions.
Know what the expert told
With the start of the new project, ABP News consulted economic expert Vijay Sardana to know the answers to many questions. Sardana says that “I think black money will be reduced through this project, because in the coming time the government may make it mandatory to use it for for example more than five thousand transactions. It will remain close so that the government will have a direct eye on the expenses incurred by everyone. The dependence on hard currency will be reduced. This is a very good start for the government.
How Digital Currency Will Be Different From Crypto Currency?
This is based on Rupee to Rupee transaction, the ups and downs of the market in crypto also matter. It has been started by RBI i.e. Central Government and is regulated by them only. On the other hand, crypto is a private enterprise, due to which there is a lot of risk in it. Here RBI includes 9 banks, through which information will be available where we are getting its benefits. Now you have to deposit cash, keep it safe, deposit it in banks, there is also currency damage, this will not happen now with the introduction of digital currency.
How Google Pay is different from e-wallets like Paytm, UPI?
There is a limit in e-wallet, but you will also be able to transfer larger amounts than digital currency in it. But there will also be a big concern of security in this. So that it should not be missed. Like what will be done in case of transferring money to the wrong number. The details of this will also be clarified by RBI.
Isn’t this for common people?
Common people are using the e-wallets already permitted by RBI. But e-wallet is not working in the whole sale, for which this project has been brought. Like the hefty expenses incurred in wedding shopping, the expenses incurred in the market etc., now all this will become easy.
Will currency notes expire?
No, it will not happen. But it will be convenient. Now if your notes are torn or stolen, there will be a problem. But in digital currency all this will not be a problem. There will be no tension while traveling. Right now it is difficult to transfer two lakh five lakhs. Which will be easy now. Efforts are also being made to upgrade the cash transfer.
How is it different from Net Banking?
There is also a payment charge in net banking, there will be cash-to-cash transaction. No charge will be given.
Why did RBI choose only 9 banks for this project?
RBI must have seen which bank’s digital infrastructure is very strong, whose cyber security is strong, whose reach is how much – as parameters RBI must have seen and made them a part of this project.