The quantity of transactions involving India’s digital currency, the e-Rupee, has precipitously decreased, reaching a tenth of what it was in December. This represents a significant decrease. One million retail sales were made every day by the time the previous year came to a close. The number of transactions that occur each day is currently only 100,000.

Introducing the electronic rupee

Under the auspices of the Central Bank Digital Currency (CBDC), the Reserve Bank of India (RBI) introduced the electronic Rupee on the first of December in the year 2022. It is a digital representation of the traditional rupee and was developed to serve as a kind of legal money for all kinds of financial transactions.

Types of CBDCs

CBDCs are categorized into two main types:
Retail CBDCs: It is meant to be used by the people, like cash.
Wholesale CBDCs: It is used by banks to settle transactions between banks and for other large-scale financial activities.

The issuance and purchase of electronic rupees

There are electronic tokens known as e-Rupees that are provided by the Reserve Bank of India (RBI). These tokens have values that are comparable to those of actual money. Commercial banks distribute these tokens, and they can be purchased via digital wallets that are made available by entities that are authorized to provide financial services. E-Rupee enables individuals to have the ability to purchase and sell items with one another as well as with businesses by providing features such as the ability to scan QR codes and conduct transactions using cell phone numbers. It is the gateways for the Unified Payments Interface (UPI) that ensure the smooth operation of the transfers.

Benefits of Utilizing Electronic Rupee

• The usage of digital financial services is made simpler for all individuals, even those who do not have bank accounts, due to this implementation of financial inclusion.
• Transactions are completed more quickly, and costs are reduced compared to traditional banking.
• Provides security and transparency by utilizing blockchain technology to guarantee the safety of transfers and reduce the likelihood of fraudulent activity