NEW DELHI: The Reserve Bank of India on December 1 launched retail digital rupee, a digital token that represents legal tender. It has issued the digital currency in the same denominations that paper currency and coins are issued.
Around eight banks have been selected for phase-wise participation in this pilot. The first phase will begin with four banks– State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank – in four cities across the country. Retail digital rupee transactions can be carried through a digital wallet on mobile phones and other devices. The pilot phase covers the cities of Mumbai, New Delhi, Bengaluru, and Bhubaneswar, where a select few customers and merchants are able to use the digital rupee (e₹-R), or e-rupee. Later it would be extended to Ahmedabad, Gangtok, Guwahati, Hyderabad, Indore, Kochi, Lucknow, Patna and Shimla.
Users can make payments to merchants via Digital Rupee using QR codes displayed at merchant locations. These transactions can be Person to Person (P2P) as well as Person to Merchant (P2M).