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Live Digital eRupee P2M transaction (Select users)

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Abhishek012

TF Pioneer
Live Digital eRupee P2M transaction (Select users):

Please note Change of 25/_ will be credited back to the wallet.

All the best to the lucky customers

From 1st December, 2022. Select users will get a CBDC wallet with digitally printed notes and signatures by rbi Governor.

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Today is a big day for both mission Digital India and Financial Inclusion. RBI has rolled out the pilot for Central Bank Digital Currency (CBDC) popularly known as the Digital Rupee. It is said to be an interchangeable, and on par with the sovereign currency.

Good News:

Holders of CBDC won't need a bank account because it is fungible legal money.

KEY FACTS:

- The pilot is rolled out only at select locations in closed user group (CUG) comprising participating customers and merchants.

- The DigitalRupee would be in the form of a digital token that represents legal tender and will be distributed through intermediaries (banks)

- Users will be able to transact with the eRupee through a digital wallet offered by banks and stored on mobile phones/ devices

- Transactions can be both Person to Person (P2P) and Person to Merchant (P2M). Payments to merchants can be made using QR codes displayed at merchant locations.

- It will guarantee the features of physical currency like trust, safety and settlement finality

- However, unlike cash, it will not earn any interest and can't be used for deposits with banks

In the first phase this is piloted with State Bank of India, ICICI Bank, YES BANK and IDFC FIRST Bank in four cities. The second phase, to be rolled out soon, will see Bank of Baroda, Union Bank of India, HDFC Bank and Kotak Mahindra Bank joining in.

Read the RBI circular below for better understanding -

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amar666 said:
im still not sure why would i prefer this over UPI?
Click to expand...
UPI is the medium to transfer the fund and it's linked to bank account where as CBDC works on the concept of wallet just like a physical wallet and it will carry digital notes of 10, 20, 50, 100, 500, etc. Also it will have a trail, so any amount given for specific purpose can be validated if it was paid for that or not like subsidies. The physical note won't have trail but for eRupee, it's possible to know who used/spent/transferred that digital note. It's more beneficial to RBI/govt not end users. For us, it's still load/scan/pay.
 
mukundstud said:
Still cannot understand what is the advantage of Digital Rupee for consumers over their bank accounts, which will give them at least some interest. The end functionality will be same in case of both.
Click to expand...
Whenever you deposit any money to bank legally that money is not yours anymore. Bank owns that money and they agreed to return that money with certain percentage of interest whenever requested. But sometimes banks may not be able to return that money in crisis situation. In such cases your money is insured upto 5 lacs only. In short there is a credit risk when you deposit money in bank. The interest you earn is the reward for taking the risk.

In case of digital money you are the sole owner of the money and your money is totally safe as long as Indian economy exists. In just like keeping cash but in a digital way.
 
amar666 said:
im still not sure why would i prefer this over UPI?
Click to expand...
UPI/RuPay/Visa/mastercard etc is a mediator.

Here no transaction fees or MDR required because no mediator exist.

2nd and important thing -

Digital eRupee is 100% secure.

Everything is transparent or If any fraud happen, the transaction will be easily reversed.

3rd thing -

We can easily internationalize our Indian rupee (China is best example - China mostly use digital Yuan/Renminbi for global transactions).


Merchant will save MDR fees. Amazon/Flipkart like major merchants will offer cashback purchase through Digital eRupee. 🤣🤣

I think in future will get digital credit via eRupee.
 
bugmenot said:
UPI is the medium to transfer the fund and it's linked to bank account where as CBDC works on the concept of wallet just like a physical wallet and it will carry digital notes of 10, 20, 50, 100, 500, etc. Also it will have a trail, so any amount given for specific purpose can be validated if it was paid for that or not like subsidies. The physical note won't have trail but for eRupee, it's possible to know who used/spent/transferred that digital note. It's more beneficial to RBI/govt not end users. For us, it's still load/scan/pay.
Click to expand...
Would i pay 47rs to a vendor similarly how i pay using UPI? or will it be me giving them 50rs(since we will have fixed denomination notes) and they giving me change in physical form?
 
amar666 said:
Would i pay 47rs to a vendor similarly how i pay using UPI? or will it be me giving them 50rs(since we will have fixed denomination notes) and they giving me change in physical form?
Click to expand...
I don't know exact answer. It's still in pilot stage, so better to wait. Though your question is good. It will take a lot of time to adopt eRupee like UPI.
 
amar666 said:
im still not sure why would i prefer this over UPI?
Click to expand...
i heard that it will work without internet.

there is no credit risk that is associated with bank deposits.

based on blockchain technology so the records are not held by individual banks.

i might be wrong, but if these are the actual benefits, then one can definitely use it as a replacement to physical and digital wallets.
 
ltf4ever said:
i heard that it will work without internet.

there is no credit risk that is associated with bank deposits.

based on blockchain technology so the records are not held by individual banks.

i might be wrong, but if these are the actual benefits, then one can definitely use it as a replacement to physical and digital wallets.
Click to expand...
if not internet then will it work via NFC? that might not be possible without specific mobile devices no?
bugmenot said:
I don't know exact answer. It's still in pilot stage, so better to wait. Though your question is good. It will take a lot of time to adopt eRupee like UPI.
Click to expand...
yeah, a lot of doubts currently, but will definitely try to get my hands on 1 note atleast once its available 😀
 
amar666 said:
if not internet then will it work via NFC? that might not be possible without specific mobile devices no?

yeah, a lot of doubts currently, but will definitely try to get my hands on 1 note atleast once its available 😀
Click to expand...
UPI Lite already supported offline transactions via QR code. I think same way digital eRupee QR will work.

UPI Lite create on device wallet for small denomination transactions upto Rs200.

Digital eRupee also create on device digital eRupee wallet.
 
Abhishek012 said:
UPI/RuPay/Visa/mastercard etc is a mediator.

Here no transaction fees or MDR required because no mediator exist.

2nd and important thing -

Digital eRupee is 100% secure.

Everything is transparent or If any fraud happen, the transaction will be easily reversed.

3rd thing -

We can easily internationalize our Indian rupee (China is best example - China mostly use digital Yuan/Renminbi for global transactions).


Merchant will save MDR fees. Amazon/Flipkart like major merchants will offer cashback purchase through Digital eRupee. 🤣🤣

I think in future will get digital credit via eRupee.
Click to expand...
1. Regarding the point of MDR, it is possible to levy MDR in Digital Rupee too. In Ethereum/Bitcoin too, we have to pay a transaction fee to transfer funds. Cause in the end, those networks are maintained by miners. In this case, RBI is maintaining the network.

2. Regarding the 2nd point, even Bank Accounts are secured through various Cryptographic Algorithms. They are basically compromised through social engineering/human errors, which is even possible in digital rupee. Even account based transactions are reversible.

3. I agree with this point. eRupee can be useful for transferring funds between large institutions. But I don't see much use of it in consumer space. Have a look at this article explaining the progress of Digital Yuan in Chinese Consumer Space:

www.csis.org

China's Progress Towards a Central Bank Digital Currency | New Perspectives on Asia | CSIS

While Beijing has made substantial progress over the past several years in developing a digital renminbi, it still faces many significant challenges preventing widespread use.
www.csis.org www.csis.org

It signifies that digital yuan is still facing difficulties in becoming popular among the general public.
 
amar666 said:
Would i pay 47rs to a vendor similarly how i pay using UPI? or will it be me giving them 50rs(since we will have fixed denomination notes) and they giving me change in physical form?
Click to expand...
I doubt that eRupee payments will be in the denominations of Rs. 10,20,50,100 etc. as it will become a great hassle to make those payments. First, we have to pay Rs. 50 to buy a Rs. 47 product, and then take back Rs. 3 as change, while UPI will be just scan and pay. Even chinese CBDC wallet allows users to pay in decimals.
 
Abhishek012 said:
UPI Lite already supported offline transactions via QR code. I think same way digital eRupee QR will work.

UPI Lite create on device wallet for small denomination transactions upto Rs200.

Digital eRupee also create on device digital eRupee wallet.
Click to expand...
According to my experience with UPI Lite. It still requires internet connection to make payments. The supporting bank just creates a separate wallet for holding Rs. 2000. I logged into 2 BHIM apps with my same number, in my mobile(one in samsung's secure folder, and one outside it). On creating a UPI Lite Wallet in one mobile app, it also gets synced with the other BHIM app. This can only happen with the help of Internet Connection. Moreover, BHIM will Not even open without the internet connection.
 
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