7 Facts About RBI's e-rupee

Legal Tender The CBDC is a legal tender issued by the Reserve Bank of India.

It's Digital It would be your regular, sovereign-backed currency note, but in a digital format.

No bank account needed Termed e-rupee, you will not need a bank account to spend or receive this money.

On a par with cash Issued as tokens, the RBI’s e-rupee will be on a par with regular cash. You can use it to make payments and also exchange it for physical notes from the bank.

In the works for long RBI has been exploring the idea of CBDCs since 2017. Already, 105 countries are actively engaged in developing or exploring the viability of this form of money for their economy.

Distribution While the central bank will be its sole issuer, its distribution will be handled entirely by commercial banks.

No interest Unlike regular savings account deposits, e-rupee deposits will not pay any interest. E-rupee will also be the direct liability of the RBI.

Retail use Most experts are unclear on many issues related to its retail use. The incentive for a regular user to switch to e-rupee with UPI present is at present low.