The Reserve Bank of India is launching a digital currency project called e-rupee, and non-banking payment companies like Google Pay, Phone Pay, Amazon Pay, Cred, and Mubiquik have applied to participate in the pilot project. Previously, only Indian banks were allowed to offer e-rupee services, but now private non-banking payment players can also join the pilot project.
The initial trial for e-rupee is set to begin in December 2022, with the participation of popular payment apps such as Google Pay and Amazon Pay in facilitating e-rupee transactions. The Reserve Bank of India plans to keep the payment details of Indian citizens confidential and is working on addressing challenges related to scalability and adoption during the two-year pilot period. While there are no immediate plans to fully launch e-rupee, efforts are being made to increase its usage and address issues such as lack of worldwide acceptance.
Furthermore, other countries are also exploring similar digital currency initiatives. For instance, China has started allowing digital yuan payments to increase its usage, Taiwan is in the process of launching its own CBDC, and Rwanda is planning to introduce its own e-currency within the next two years.
E-rupee digital payments, brought by the Reserve Bank of India, offer fast and easy transactions without the need for an intermediary or a bank account. Payments can be made or received by scanning a QR code or inputting an SMS string, and there are no transaction fees or charges.
