New Delhi2 days ago
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Reliance General Insurance has become the first company to start accepting premiums in RBI’s digital currency e-Rupee. The company has partnered with Yes Bank for this. Customer should have an active e-wallet to make payment in e-Rupee.
This wallet can be of any bank. Just as there is a QR code for making payments through UPI, the same code will be provided by Reliance for making payments through e-Rupee. The customer has to open his e-wallet and scan the QR code and the payment is done immediately.
According to the company, the purpose of this new method of payment is to provide easy, secure, instant and green payment solution to the customers. The retail e-Rupee pilot was launched by the RBI on 1 December 22 in partnership with SBI, ICICI Bank, Yes Bank and IDFC First Bank.
Although it was launched for closed user group only. That is, only a few selected users could use it. First it was launched in four cities Mumbai, New Delhi, Bengaluru and Bhubaneswar. Later it was extended to other cities.
What is Digital E-Rupee?
e₹ is a digital form of currency based on blockchain technology. It is of two types – CBDC Wholesale and CBDC Retail. Its value is also equal to the current currency. It is also accepted like physical currency. e₹ is kept in the mobile wallet. There is no need to have a bank account to keep it.
How e-rupee transaction is different from UPI?
Money should be deposited in the bank account for making transactions through UPI. For this, either we have to deposit the physical currency in the account ourselves or get the money transferred from somewhere to our bank account. This means that one or the other has to make a deposit in the physical currency account only once for this transfer to be possible. But after the introduction of e-rupee, physical currency does not have to be deposited in the account even once.
Bank account is not required in e-rupee transaction. RBI transfers money directly to digital wallet instead of physical currency. This means that instead of keeping notes in your pocket, you can keep e-rupee in your wallet and pay each other. This digital wallet is provided by the bank.
Reason for introducing e-rupee?
It will not replace the existing digital form of rupee, but will provide another medium of transaction. RBI believes that e-Rupee will give a boost to the digital economy. It will help in achieving the goal of reducing the cash economy. It will also help in reducing the transaction cost. Payment system will become more effective.
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