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Live Digital eRupee P2M transaction (Select users)

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RupayMan said:
I am an active user of CBDC, how it works all I know, but if UPI plays a role of intermediate and why not bank account transfer? There bank is not playing a role? That's my question.
Click to expand...
Bank is eliminated in CBDC . In Conventional Banking, The Bank Deposits a security with RBI to Operate it borrows money from RBI at Repo Rate and Lend it also prints money out of thin air just numbers on a spreadsheet which is called Fractional Reserve banking so If the bank deposits 10INR with RBI It can lend 100INR to People earn interest and so on .
.
Now with CBDC RBI does not need the Bank it can give money straight to People so Bank is RIP .
*Thats why there is no interest on CBDC because there no intermediary
 
roshancc said:
Bank is eliminated in CBDC . In Conventional Banking, The Bank Deposits a security with RBI to Operate it borrows money from RBI at Repo Rate and Lend it also prints money out of thin air just numbers on a spreadsheet which is called Fractional Reserve banking so If the bank deposits 10INR with RBI It can lend 100INR to People earn interest and so on .
.
Now with CBDC RBI does not need the Bank it can give money straight to People so Bank is RIP .
*Thats why there is no interest on CBDC because there no intermediary
Click to expand...
I was still talking about loading the money to CBDC with bank account. Not for using CBDC. All got my question in a wrong way.. Good night.
 
roshancc said:
Bank is eliminated in CBDC . In Conventional Banking, The Bank Deposits a security with RBI to Operate it borrows money from RBI at Repo Rate and Lend it also prints money out of thin air just numbers on a spreadsheet which is called Fractional Reserve banking so If the bank deposits 10INR with RBI It can lend 100INR to People earn interest and so on .
.
Now with CBDC RBI does not need the Bank it can give money straight to People so Bank is RIP .
*Thats why there is no interest on CBDC because there no intermediary
Click to expand...
RBI is a regulator and never deals with people directly.
 
roshancc said:
Bank is eliminated in CBDC . In Conventional Banking, The Bank Deposits a security with RBI to Operate it borrows money from RBI at Repo Rate and Lend it also prints money out of thin air just numbers on a spreadsheet which is called Fractional Reserve banking so If the bank deposits 10INR with RBI It can lend 100INR to People earn interest and so on .
.
Now with CBDC RBI does not need the Bank it can give money straight to People so Bank is RIP .
*Thats why there is no interest on CBDC because there no intermediary
Click to expand...
Bro he is not able to understand simple Explanation.

And you are giving him Explanation in the language of Economics
 
Rkr said:
It's not that much easy to eliminate physical notes .But still if 10% people shifts to digital one then it's kind of big success.
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I get it I also Installed it but unless they create a hybrid QR which is interoperable with UPI and CBDC it wont work .
UPI Success has a lot to do with intermediary companies like Paytm and Phonepe the Govt provided Infra they did the remaining task and we got the beauty called UPI .
Remember Bharat QR the QR for CCs most private players pushing it have pulled out of it .
 
Rkr said:
RBI is a regulator and never deals with people directly.
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With CBDC its 100% direct interaction now .
The Bank Note we use belongs to RBI so when we use Cash we are technically interacting with RBI`s Asset .
CBDC is digital form of Cash does not require the distribution intermediary ie the Bank hence Direct Interaction with People and RBI .
 
RupayMan said:
How you know I don't understand economics 😅 See, CBDC eliminates bank is fine, but to load the CBDC wallet one must use UPI or bank account only right? Here bank is not playing a role every time loading the wallet?
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Your e Ruppe wallet app is already maintained by Bank and without Bank account you can't access eRupee app and also not able to redeem the same if some one send digital rupees to you.
 
RupayMan said:
How you know I don't understand economics 😅 See, CBDC eliminates bank is fine, but to load the CBDC wallet one must use UPI or bank account only right? Here bank is not playing a role every time loading the wallet?
Click to expand...
Bank is not acting as an Intermediary

Money deducted from Sender
E-Rupee wallet and deposited to E-Rupee wallet of Receiver.

Hence Banks not involved in the whole Transfer

Bank is required for Depositing
E-Rupee in Customer's E-Rupee Wallet, whenever you are short of E-Rupee not acting as an Intermediary.
 
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Bank will begin to levy charges on e rupee loading just like they have on atm cards. They will fix min per month amount as free . From what i understand e rupee loading uses bank servers but once loaded transaction to another person is mediated by npci servers only no bank involves. Upi is pain in ass for banks from which money is being deducted because they loose capital and also have to arrange their server for transaction.
 
RupayMan said:
How you know I don't understand economics 😅 See, CBDC eliminates bank is fine, but to load the CBDC wallet one must use UPI or bank account only right? Here bank is not playing a role every time loading the wallet?
Click to expand...
Can you not sell some service and get e-rupee in your wallet without loading from bank?

I have not yet signed up but is the apps by banks allow signing up without link to bank account?
 
jack333 said:
I think they'll give discount soon to encourage people for erupee like rupay card offers
Click to expand...
Yes, it will take some time. Maybe few years but once Amazon/Flipkart etc will start accepting e-rupee. You will get discount or cashback offer for your online or offline shopping. Reliance already accept e-rupee on offline stores.

timesofindia.indiatimes.com

Reliance Retail will introduce digital rupee in 17,000 additional stores - Times of India

India Business News: NEW DELHI: Reliance Retail has begun accepting digital rupee in its stores, providing a significant boost to the Reserve Bank of India's digital curre.
timesofindia.indiatimes.com timesofindia.indiatimes.com
 

HDFC Bank becomes first to offer interoperability between CBDC and UPI​

HDFC Bank becomes first to offer interoperability between CBDC and UPI

HDFC Bank becomes first to offer interoperability between CBDC and UPI Private lender had more than 100,000 customers and 170,000 merchants under pilot programme HDFC Bank, the country’s largest private sector lender, has become the first commercial bank to implement interoperability between...
www.technofino.in www.technofino.in
 
I think this can work if, for example, i get my salary directly in my erupee wallet. Then I can choose to deposit in bank or make payments directly. If this happens then truly banks as intermediaries will get eliminated. Then they will have to entice customers to deposit their salaries/income to their bank account with attractive offers. while i used salary example, we can think of other sources of income as well like sales, transfer of assets, etc.
 
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