Rupee vs E-Rupee: The Reserve Bank of India (RBI) launched an offline version of the digital rupee on Thursday. The most significant feature of this electronic rupee is that it allows payments to be made without a network. This could solve the cash problem.
In fact, this could prove to be the most revolutionary method of cashless payment, as you simply scan a QR code offline and a tap will instantly process the payment. This electronic version of the Indian rupee is truly remarkable. So, let’s explore what e-rupee is and how it differs from the standard rupee.
How is e-rupee different from normal rupee?
E-Rupee is the Reserve Bank of India’s digital currency, which you can use for any transaction. The RBI has given it the tagline, “Cash but digital.” In fact, this currency works exactly as its tagline suggests. In a way, it’s like cash in your wallet, which you can withdraw and pay whenever and wherever you want. This means cash payments, but without cash. You don’t need any network or data, and you don’t have to carry it around in your pocket like normal rupees. Furthermore, there’s no worry about losing it.
How will you be able to make payment?
This payment system uses NFC, or Near Field Communication technology. You also use this technology daily to share photos, videos, and data on your phone. Users simply open their phone’s wallet, enter the amount they want to pay, and then scan the QR code on the shopkeeper’s payment machine, and the payment will be processed instantly.
What is the difference between UPI and e-Rupee?
Speaking of UPI, whenever you make a payment, a specific amount is deducted from your bank account and transferred to the other person’s bank. However, e-Rupee is different. It doesn’t require a bank account. Payments are made through two e-Rupee wallets. Furthermore, its unique feature is that it can also scan UPI and QR codes.
Who will benefit?
The primary reason for introducing digital currency is to facilitate cashless payments in places where internet access is weak. This will most benefit those living in rural areas where internet access is scarce.