Reserve Bank of India has launched E-Rupee as a pilot project. Its trial has started in four cities of the country. But now it has to be seen how common people accept it. Will a payment system like UPI become an obstacle in its path?
Image Credit source: File Photo
Finance Minister Nirmala Sitharaman this year Nirmala Sitharaman digital currency in his budget speech (Digital Currency) Was told to bring Before the end of the year, now we have E-Rupee in front of you. (e₹-R) exists as. reserve Bank of India (RBI) Has launched it on pilot basis in 4 cities. But the biggest doubt about this is whether it will really be popular among the people? somewhere UPI Will it not become an obstacle in its path?
Will E-Rupee replace anyone?
First of all, it is very important for us to know whether E-Rupee will replace any other payment system. So let us tell you that it is not so. Rather, it will be a digital form of cash transaction in real terms. This would be a whole new system.
The operation of E-Rupee will be directly monitored by the Central Bank i.e. RBI. It will keep legal tender like the notes issued by RBI. It will be issued in the same denomination as paper currency or coins. It will be distributed by the banks.
Why is there doubt regarding e-Rupee?
The International Monetary Fund is not sure whether the e-rupee will be successful or not. (IMF) Can be better understood from a report of The IMF’s ‘Instant Payments: Regulatory Innovation and Payment Substitution Across Countries’ paper states that instant payments like UPI already exist. They are being used for retail transactions.
In such a situation, it is possible that people are not that much excited to adopt the digital currency of the Central Bank i.e. E-Rupee. The IMF also gave the reason behind this that even in advanced economies like Australia, Singapore and Britain, Central Bank Digital Currency like E-Rupee (CBDC) Interest has not been seen regarding the issue.
UPI is already very effective
It has also been told in this paper that emerging economies are enthusiastic about digital currency, because they need to increase financial inclusion, efficiency of payment system, security, competition and facilities for transactions with other countries. But in this case, UPI is already an effective option on many aspects. In such a situation, what would be the need for people to turn to E-Rupee.
UPI should not become an obstacle in the way
UPI came in the year 2016 in India. Till October 2019, more than 1 billion transactions took place in the country through it. At present, till date, 44.32 billion transactions have been done through UPI. This is equivalent to a transaction of Rs 75,000 billion.
According to a news from ET, at present, about 76 percent people in the country prefer to make digital payments through UPI. At the same time, 84 percent of the population born after the 90s prefer UPI payment for online shopping.
One of the major reasons for liking UPI is its presence at every level of the retail sector. At the same time, where it is free to do person-to-person transactions. At the same time, the cost of Person 2 business transaction is also very nominal and this too has to be paid by the receiver of the payment. In such a situation, it has to be seen how much people will accept E-Rupee.
English Headline : Will E-Rupee Succeed When UPI already present for retail transaction explainer.
Source: www.tv9hindi.com”