The Digital Rupee (e₹) is India’s official Central Bank Digital Currency (CBDC), introduced by the Reserve Bank of India (RBI).
It’s not cryptocurrency, and it’s not UPI — it’s digital cash, backed by the Indian government.
But how will it affect your daily life, budget, and bank transactions?
Let’s break it down.
What Is the Digital Rupee (e₹)?
Issued by: Reserve Bank of India (RBI)
Type: Legal tender — just like physical currency
Form: Stored in a digital wallet, not in a bank account
Usage: Offline & online payments, just like cash
How Is It Different from UPI or Wallets?
| Feature | UPI | Wallets (Paytm, PhonePe) | Digital Rupee (e₹) |
|---|---|---|---|
| Backed by | Banks | Private firms | RBI (Govt of India) |
| Needs internet | Yes | Yes | Can work offline |
| Linked to account | Yes | Yes | Not needed |
| Legal tender | No | No | Yes ✅ |
How Will It Affect Your Daily Finances?
1. Faster Peer-to-Peer Payments
Send money instantly, even without a bank
Acts like cash, just digital
Works 24/7, even offline in future updates
2. No Extra Fees or Charges
No MDR (Merchant Discount Rate)
Cheaper for small businesses, roadside vendors
More inclusive for rural and semi-urban India
3. More Secure Than Wallets
Issued by RBI, it has zero risk of collapse
No third-party data selling
Greater privacy in person-to-person transactions
4. Potential to Replace Cash in the Long Run
Easier to carry
Cannot be torn, stolen, or counterfeited
Reduces dependency on ATMs or physical wallets
What Should You Watch Out For?
You’ll need to download RBI-linked wallets (via select banks like SBI, HDFC, ICICI, etc.)
Limited merchant acceptance for now
Digital literacy and phone access may still be barriers in some areas
Example: Using e₹ in Daily Life
Tea Shop: Scan QR and pay via e₹
Grocery Bill: Use e₹ from SBI wallet instead of UPI
Family Transaction: Send ₹500 to a friend using digital rupee — even if they don’t have a bank account
🚨 Important Notes
Digital Rupee is not a cryptocurrency
It does not give interest like savings accounts
No middleman like in UPI — direct settlement via RBI
❓FAQs
Q1: Is the Digital Rupee safe to use?
Yes, it’s issued and regulated by the RBI, making it as safe as physical currency.
Q2: Will it replace UPI or cash?
Not immediately. UPI will still exist, but the Digital Rupee may reduce the need for physical cash over time.
Q3: How do I get the Digital Rupee?
Through selected banks and RBI-approved wallets. You’ll download the app and load e₹ like prepaid cash.
Published on : 1st August
Published by : SMITA
www.vizzve.com || www.vizzveservices.com
Follow us on social media: Facebook || Linkedin || Instagram
🛡 Powered by Vizzve Financial
RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed