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.