The eRupee, which is issued by the Central Bank of Digital Currency of India, cannot be turned directly into fiat currency.
Anuj Ranjan, top general manager of the RBI’s fintech section, said that the RBI would only issue eRupees for bank deposits and only allow the conversion of digital currency into cash for “today.” Ranjan made these remarks while speaking at an event hosted by the Indian Merchants’ Chamber.
In December of 2016, the Reserve Bank of India (RBI) introduced the eRupee as a form of legal money. On the Reserve Bank of India’s (RBI’s) balance sheet, the Digital Rupee will be classified as a “liability.” According to Anuj Ranjan, the expenditures that are associated with the eRupee would be the responsibility of the central bank, which is known as the RBI.
He went on to say that since the infrastructure was a public benefit, the RBI would be responsible for maintaining it. The problem of MDR won’t be a concern.” The rate or amount that a merchant must pay to a bank in order for the bank to be allowed to accept payments by card is referred to as the merchant discount rate (MDR).
A number of financial institutions, including Yes Bank, IDFC Bank, and ICICI Bank, have already made their digital wallets downloadable via the Google Play Store and the Apple App Store. A number of businesses, including Reliance Retail, Natural Ice Cream, and oil marketing organizations, have joined the initiative to accept eRupee transactions as a form of payment.
The installation of the digital wallet can only be done by clients of the bank, since we have limited the app to SIM numbers that are registered with the bank by consumers, said Ajay Rajan, country head for transaction banking at Yes Bank, who was speaking at the occasion. After it has been deployed, however, clients may contribute digital rupees to the wallet from any bank.
Compiled by Coinbold