Digital Rupees Link With UPI: The Reserve Bank of India (RBI) is working on a plan to operate the QR code of the proposed Central Bank Digital Currency (CBDC) with the UPI payment system. In a conversation with reporters here on Thursday, RBI Deputy Governor T Ravi Shankar said that the central bank has also planned to increase the number of users of the e-rupee, i.e. CBDC, to 1 million by the end of this month.
Pilot Test Of Digital Rupee Started
Additionally, Shankar has said that RBI has planned to adjust the QR code of CBDC with Unified Payments System (UPI). Last year, the Reserve Bank conducted a pilot test regarding using the digital rupee. In the initial phase, wholesale use of CBDC was tested, and retail use was also tested.
UPI Has Become Very Popular
The Reserve Bank wants to use the UPI platform, which has become very popular for payments among the people, and also for the QR code of CBDC. Shankar, however, said that the RBI had not fixed any timeline for the general use of CBDC and will gradually move in this direction.
What Is Digital Rupee?
Let us tell you that the digital rupee is the electronic form of notes and coins. After introducing the e-rupee, you will not need to keep coins. The only difference is that you will have to do this transaction online, i.e. digitally. Digital Rupee is based on blockchain technology.
In Which Cities The Digital Rupee Will Be Available
The Reserve Bank of India (RBI) has talked about making the digital rupee available through 8 banks of the pilot project. This facility will start in Mumbai, New Delhi, Bengaluru and Bhubaneswar in the first phase. After this, the digital rupee will be available in Ahmedabad, Gangtok, Guwahati, Hyderabad, Indore, Kochi, Lucknow, Patna and Shimla in the second phase.
