The RBI launched the pilot for retail digital rupee from 1 December 2022.
The e-rupee is a form of digital token that will represent legal tender.
Digital rupee is different from cryptocurrencies as it is issued in the same denomination as traditional currency.
Cryptocurrency has its own denomination - from 0.001 and so on.
The digital rupee in the 1st phase will be issued by only four banks - SBI, Yes Bank, ICICI Bank, and IDFC First Bank.
Digital rupee can be sent to person or pay any bills via QR codes also.
It can be converted it into different forms - transfer to a savings account, open a bank deposit, etc.
It could reduce the printing costs in the future.
Users can store e-ruppe in digital wallets, which can be downloaded on their smartphones.