RBI launched the country's first digital currency on 1 November i.e. Tuesday. Currently, Central Bank Digital Currency (CBDC) has been issued under a pilot project. SBI, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank, and HSBC have been selected for this.
Finance Minister Nirmala Sitharaman announced the issuance of digital currency during the budget presented on February 1.
two types of digital currency
There are two types of digital currency – CBDC wholesale and CBDC retail. Starting November 1, the digital currency CBDC is wholesale. It will be used by large financial institutions, including banks, large non-banking finance companies, and other large transactional institutions. After this CBDC retail will be issued. People will be able to use it for everyday transactions.
The value of e ₹ will be equal to the current currency
The value of e ₹ i.e. digital currency will also be equal to the current currency. It will also be accepted as physical currency. With e ₹ there will be no need to keep cash in your pocket. It will also work like a mobile wallet. The bank account will not be required to keep it. With this, you will be able to make a cashless payment.
No need to share information with an unknown person. Privacy will be maintained. Firstly, the dependence on cash will decrease. The cost of printing physical rupees will be reduced. It will help in achieving the target of reducing the cash economy. It will also help in reducing transaction costs.
Question: Will it be like cryptocurrency?
Answer: No, then how will it be, let us know…
CBDC is not a cryptocurrency. The CBDC of the Reserve Bank of India will be a legal tender.
It will be issued by RBI, so there will be no risk of it. This will make it easier to buy in the country.
This private virtual currency will be completely different from bitcoin.
There are many obstacles with private virtual currency and these currencies like bitcoin are not recognized in all countries.
Also, since the private virtual currency is not linked to any government, there is a lot of risk in it.
Question: Is CBDC better than other digital payments?
Answer: Yes, know-how…
Suppose you transact with a CBDC instead of your bank account through a UPI system. In this, there is no need for interbank settlement as soon as the cash is handed over. With this, transactions from the payments system will be done in more real-time and at less cost. This will enable Indian importers to pay digital dollars in real time to US exporters without any middlemen.
Question: Will the introduction of CBDC affect banks?
Answer: Yes, know what kind of effect it will have…
The introduction of CBDC will reduce the demand for transactions for bank deposits. Also, the settlement risk will be less. Being risk-free, CBDC will reduce bank deposits. Also, the government guarantee on deposits will be cut. On the other hand, if banks lose deposits, their ability to build credit will be limited. Because central banks cannot provide loans to the private sector.
Will digital currency prove beneficial for common people?
With the introduction of digital currency, the cost of transactions for common people and businesses with the government will be reduced. For example, a worker in the UAE gets 50% of the salary in the form of digital money. With this, these people can send money to their relatives present in other countries easily and without paying extra charges.
The World Bank estimates that at present, sending money to other countries in this way has to pay a fee of more than 7%, while with the introduction of digital currency it will come down to 2%. With this, low-income countries will get more than $ 16 billion (Rs 1.2 lakh crore) every year.
Also Read: Supreme Court: Right to vote for prisoners, Supreme Court seeks response from Center on PIL
Mandaus cyclone moving towards Tamil Nadu, Andhra Pradesh, and Puducherry, NDRF team ready, Orange alert in 12 districts
Cyclone Mandaus, which originated from the Bay of Bengal, is moving towards Tamil Nadu, Andhra Pradesh, and Puducherry. Heavy rain, lightning, and strong wind are expected in these states due to the
Gyanvapi Case: Supreme hearing tomorrow on the protection of 'Shivling' found in Gyanvapi, a bench will be formed for the matter
The Supreme Court will hear on Friday the application for protection of the 'Shivling' found in the Gyanvapi Masjid complex in Varanasi. A bench will also be constituted to consider the matter.
ISIS-K took responsibility for the Kabul suicide attack: The injured were treated in the hospital's kitchen-canteen; 20 killed
ISIS-K has claimed responsibility for the suicide bomb attack in Kabul, the capital of Afghanistan. ISIS-Khorasan has claimed that 20 people died in the blast. However, the Taliban is giving different
IND vs SA Pitch Report: Who will benefit from the Cape Town pitch, batsmen or bowlers? such is the mood
IND vs SA 2nd Test Pitch Report: The Indian team once again missed winning the Test series for the first time in South Africa. The Indian team led by Rohit Sharma had to suffer defeat by an innings
3.4 million people in California at risk of flooding: 2.2 million homes without electricity, many areas submerged; 17 killed so far...
Dangerous storms have wreaked havoc in California, USA for the last two weeks. Since December 26, there have been 6 storms in which 17 people have lost their lives. 90% of the state's population i.e.
Janmashtami 2023: Preparations for Dahi Handi festival in full swing in Mumbai, BMC has made special arrangements for 'Govinda'
Janmashtami 2023 Krishna Janmashtami is celebrated across the country today. Crowds of devotees are being seen in the temples to have darshan of Lord Shri Krishna. Due to Krishna Janmashtami
Raju Punjabi Death: Haryanvi singer Raju Punjabi passed away, gave many blockbuster songs with Sapna Chaudhary
Raju Punjabi Death: Haryana's famous singer Raju Punjabi breathed his last at the age of 40. The sudden demise of Raju Punjabi, known for his songs Desi Desi Na Bolya Kar, Solid Body, and Tu Cheez
Raid of Rajasthan Police at the house of Bajrang Dal Gauraksha Chief: Supporters of Monu Manesar block Delhi-Jaipur National Highway, Junaid-Nasir murder case
The Rajasthan Police on Tuesday raided Haryana's village Manesar to arrest Haryana Gauraksha chief Mohit Yadav alias Monu Manesar. Monu's supporters got angry as soon as they came to know about this.
Gujarat Election: BJP will deal with dissidents in this way, Shah's bluntly - leave Brahmastra if you don't agree to 'rebel'
Discontent has started in Gujarat Bharatiya Janata Party since ticket distribution. Voices of protest are being heard in more than 40 seats out of 166 declared. To stop them, Home Minister Amit Shah
RBSE 10th Result 2024: Rajasthan Board 10th result date may be announced today, result possible on this day
Important update for lakhs of students waiting for Rajasthan Board 10th Result. Rajasthan Board of Secondary Education (RBSE) can announce the date of release of results of class 10th
