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RBI Set To Launch Retail Digital Rupee Pilot: 10 Points

Retail digital rupee can, however, be converted into deposits with banks that earn interest. (File)
Retail digital rupee can, however, be converted into deposits with banks that earn interest. (File)

Come this Thursday, some customers in select cities can start transacting in digital rupee.

Here are the 10 important points that you need to know about the retail digital rupee that the Reserve Bank will roll out on a pilot basis on December 1.

  1.  The retail digital rupee will be available in the same denominations as the paper currency and coins, i.e., Rs 2,000, Rs 500, Rs 200, etc
  2.  The retail digital currency will be distributed through banks
  3.  Users can carry out transactions through digital wallets; only those digital wallets offered by banks participating in the RBI's digital currency drive can transact in retail digital rupee
  4.  Person-to-person (P2P) transactions as well as person-to-merchant (P2M) transactions are possible
  5.  Payments to merchants can be made using QR codes displayed at merchant locations
  6.  Trust, safety, and settlement finality are assured in retail digital rupee, as is the case in physical cash
  7.  Digital currency, stored in wallets, will not earn any interest
  8.  Retail digital rupee can, however, be converted into deposits with banks that earn interest
  9.  State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank are the participating banks in the first phase of trial which will cover Mumbai, New Delhi, Bengaluru and Bhubaneswar
  10.  Bank of Baroda, Union Bank of India, HDFC Bank and Kotak Mahindra Bank will join the trial that will be extend to Ahmedabad, Gangtok, Guwahati, Hyderabad, Indore, Kochi, Lucknow, Patna and Shimla