Introduction of Digital Retail Currency in India
The Reserve Bank of India has introduced a pilot program for a digital retail currency called e-rupee retail (e₹-R) in order to strengthen the digital economy and establish a more efficient currency management system. The program was launched on December 1, 2022, and has been successful, generating transactions worth 5.7 crore rupees (70 million rupees) in the first four months, according to a Right to Information (RTI) report published by Moneycontrol.
What is e-rupee retail?
E-rupee retail (e₹-R) is a digital retail currency that has been introduced by the Reserve Bank of India. It is an initiative aimed at promoting digital and cashless payments in the country. E-rupee retail aims to reduce the use of physical banknotes and coins while facilitating transactions for people who prefer digital payments.
Success of the Pilot Program
The e-rupee retail pilot program started with four banks and four cities. After the initial success of the program in these cities and banks, it was expanded to additional banks and cities in India. According to the RTI report, the value of transactions conducted through e-rupee retail amounted to 5.7 crore rupees (70 million rupees) in the first four months since the program’s introduction. This demonstrates that the digital retail currency has received positive feedback from people and is gaining popularity.
Benefits of e-rupee retail
E-rupee retail is an important step towards transforming India into a digital economy. A proper digital payment system is necessary to increase the efficiency and productivity of the economy. The benefits of introducing e-rupee retail include:
- Increase in cashless and digital payments: E-rupee retail encourages cashless payments, which contributes to reducing the use of physical banknotes and coins.
- Speed and convenience: Digital payments using e-rupee retail are fast and convenient. They can be made through a mobile phone or other electronic devices.
- Increased transparency: Transactions related to e-rupee retail are electronically recorded, which increases transparency and prevents illegal activities such as money laundering.
- Support for small and medium-sized businesses: E-rupee retail enables easier access to electronic payments and reduces the costs associated with cash handling for small and medium-sized businesses.
E-rupee retail brings many benefits, not only for the government and the central bank but also for the citizens and businesses in India. It is an important step towards a developed and digital economy, which contributes to more efficient currency management and country development.