NewsletterCan eRupee Be Converted To Cash? RBI Official Clarifies
The Central Bank Digital Currency or eRupee cannot be converted into cash as of now and cash cannot be converted into eRupee as well. The Reserve Bank of India will issue eRupee only to customers who have deposits in the bank.
The eRupee pilot project is going quite successfully as per the RBI. The pilot project is open only to a closed group of people and the number of users has been increasing gradually. Anuj Ranjan, the chief general manager of the fintech department of RBI, while talking at an event of the Indian Merchants’ Chamber said that the Central Bank will bear the expenses that are related to eRupee as it is for the larger public good. He said that it will be counted in RBI’s liabilities just like the currency is.
Digital wallets are available to download
The country head for transaction banking at Yes Bank, Ajay Rajan said that digital wallet is available for download in Apple Store and Google Play Store for customers. He added that it’s available for bank customers only whose SIM card number is linked to the bank account. Additionally, after installing the wallet, customers can add digital money from any bank.
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Rajan also added that cash transactions are free, however, the merchants pay money to cash-management companies for handling notes. Several companies like Reliance Retail, Natural Ice Cream, and oil companies have already signed up for accepting payments in eRupee.
The eRupee pilot project
The digital rupee made its debut on Dec 1, 2022. The pilot is now being conducted with four mainstream banks in four cities: Mumbai, Bangalore, Bhubaneshwar, and New Delhi. The aim of the pilot is to see the robustness of the creation, real-time usage, and distribution of the eRupee. More features will be added eventually as it was stated by the RBI. More banks and other cities will also be added in the second phase of the pilot. RBI had stated earlier that since the currency is digital it will make transactions easier, faster, and cheaper.
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