What is the Digital Rupee? Is it different from your UPI transactions?

Digital Rupee (E-Rupee) or the Central Bank Digital Currency (CBDC) is a digital version of the Indian Rupee issued by the Reserve Bank of India (RBI). RBI launched a pilot of the Digital Rupee in both the wholesale (Banks) and retail (individuals) segments last year. And many of you would have already received an invitation from your bank to use the Digital Rupee. From our point of view, Digital Rupee is almost similar to UPI. This means all you need to do is open the wallet app on your mobile and make the payment. That's it, and the transaction gets completed in seconds. But let’s understand it a little deeper. Think of the Digital Rupee as a tech-savvy cousin of the traditional rupee notes and coins we use. Instead of physical currency, it's a digital representation stored securely on your device. When you make a payment, it's like handing over a digital note to the recipient. The Digital Rupee relies on blockchain technology, which is like a super-secure digital ledger. This is a secure and transparent way to record transactions. The RBI issues the Digital Rupee and ensures its authenticity. When you spend it, the blockchain keeps a record of the transaction, making sure nobody cheats the system. How to use Digital Rupee? 1. Wallet Registration: To use the Digital Rupee, you'll need to download a secure mobile app provided by your bank or the RBI. This app creates a digital wallet for you, just like a regular wallet, but on your phone. 2. Funding your wallet: Similar to loading cash into your physical wallet, you'll add money to your digital wallet. You can do this by linking your bank account or transferring funds from your existing account to your digital wallet. 3. Transactions: Once your wallet is funded, you're all set to make transactions. You can use your Digital Rupee to pay for goods and services, transfer money to friends and family, or even settle bills at local stores that accept digital payments. 4. Security measures: To ensure your money is safe, the Digital Rupee employs robust security measures such as encryption and two-factor authentication. This way, your virtual money remains protected from unauthorized access. To know more about the benefit and disadvantages of the Digital Rupee and how it is different from UPI check out our blog. Link - wp.me/pe5xoh-11k Share it with your friends if you find it useful. #shorts #personalfinance #financeshorts #financeindia #rbi #digitalrupee #erupee #upi #paymentsystem #cbdc