Question

What is e-rupee?

Answer 1

The e-rupee is a digital electronic version of Indian currency notes, known as a Central Bank Digital Currency (CBDC) issued by the Reserve Bank of India. It was launched on a pilot basis in December 2022. The e-rupee functions in denominations similar to physical currency notes, such as ₹ 5, ₹ 10, ₹ 20, ₹ 50, ₹ 100, ₹ 200, and ₹ 500. Transactions using the e-rupee are mainly conducted via QR codes. While it does not replace existing forms of money, the e-rupee offers an additional method of payment for users. Its advantages include immunity to physical damage like tearing or burning and governance by a central authority, which reduces risks commonly associated with digital currencies such as Bitcoin.