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Digital Rupee will be launched in India soon:
Now the
day is not far when you will be seen paying with digital currency at the
Golgappe shop, at the clothes shop, and at the petrol pump. India may launch its
digital rupee in the coming days. RBI has issued a concept note on Digital
Rupay. RBI has been working on the digital rupee framework for the past several
months. Now RBI is soon going to launch a pilot project on Digital RuPay.
This
pilot project will be started for certain uses of Digital RuPay. The objective
of this pilot project is to educate the public about digital currency and the
features of the digital rupee in general. Along with this, the public has to be
made aware of the digital rupee. In this year's budget, Finance Minister
Nirmala Sitharaman announced the launch of the Digital Rupee.
Digital currency is not like notes. Appeared only on the computer, and does not come directly into your pocket. The biggest difference between digital currency and cryptocurrency is that digital currency is issued by the central bank of a country, whereas cryptocurrency today is a currency that has no owner. This is the reason why there have been questions about the future of cryptocurrency.
Right now cryptocurrency is neither valid nor illegal in India. Although the government is preparing to bring a bill on cryptocurrency only then the future of India's cryptocurrency will be decided. But India has certainly made preparations to bring its digital currency. Anyway, the coming era will be a digital currency. The digital currency has its advantages.
First, the expectation of fraud in digital currency is negligible. Second, the transaction of online shopping money will be easy with digital currency. The third digital currency can eliminate the black economy and the fourth digital currency is cheaper for the government. It is not that the advantages of digital currency are the only advantages. It also has some disadvantages. Bank employees can suffer after the introduction of digital currency.
With the introduction of digital currency, the
number of employees in the bank itself can be reduced. Most things have
become electronic in the bank. Therefore, the recruitment of employees in banks
may also turn out to be less. Those who work in the bank sector may feel
insecure about their job somewhere.
However, there is no such major disadvantage of
digital currency. This can be a little problem for those working in the
bank sector. Today, big countries of the world are working on bringing
digital currency. This includes the United States, Canada, Denmark, the
Netherlands, Switzerland, and the United Kingdom.
Apart from this, Japan, Sweden, China, Bahamas,
Tunisia, and Ecuador are the countries where transactions in digital
currency have started. This means that in the digital age, the currency
will also be digital. There will be no notes in your and our pockets.
The transaction will also take place in digital currency only.
Will digital currency replace paper money in India?
Preparations have started for the launch of digital
currency in the country. The Reserve Bank of India is going to take important
steps. RBI has released the concept paper. One thing has been said in it that
it will launch in two ways. One may be for retail where there will be small
payments and one will be for wholesale, when there are large types of payments
like banks pay each other among themselves.
The second
thing that has been said is that it will be token based in retail. That is,
there will be a token and by using that token you will be able to use this
digital rupee. They will be tracked this way. Now one more thing that has been
said in this, is that if you keep money digital, then you will not get any
interest of any kind.
The logic behind this is the way you keep cash with you.
So you don't get any interest in it. Similarly, if you keep a digital rupee,
you will not be given any interest in it. One thing has also been said in this
what will be your digital rupee, the view that is made so far in these
principles is that you will be able to convert whenever you want in cash. That
is, you have ₹5,000 in digital format.
If you want ₹5,000 in notes in cash, you can convert it. It was also said that you will probably not need to open a separate bank account for the digital rupee. Our current payment system is UPI based, all the payment systems whether it is Paytm or Google Pay or whatever we can use nowadays, this digital rupee will be linked with them so that people can make it convenient for people to pay in digital mode.
The basic convenience will remain a core feature. There will be no more problems with this. One more thing has been said that it will not happen that no matter how much digital currency anyone will be able to hold Digital Rupee. A limit will be fixed for this. So that people cannot hoard too much digital money. Another important question in this would be what was said in this draft because of the concern about interference in monetary policy.
But this was a big concern. It was said that if everything will be done in a digital shape then what will you do? People will start keeping all the money with the Reserve Bank and people will start keeping all that money with the Reserve Bank, then what will be the work of the banks that will affect all the work of the same type of banks?
So it was said in that, the answer is that the study of
the Reserve Bank, has said in this concept paper that there is no indication
that when the digital rupee comes, it will have any bad effect on the monetary policy. If there is any concrete indication to them or to say that the signal
has not been found, then this is an important thing that has been said in it.
If you see, from 2015 to 2022, there was such a period
that the Reserve Bank had to spend from ₹3500 crores to about ₹ 8000 crores
only in printing the notes. In printing only the notes, from where the rest of
the notes are printed, from there to the branches of the banks to the ATMs, all
those expenses are different.
When the digital rupee comes, it is not that all the cash
will be wiped out from this system, but to some extent, the cost of printing the
note and transporting it to different places will probably come down a little
and one more thing has been said in it. It is said that when the digital rupee
will come, then what we have seen in our new platforms of payment, there is no
scope to bring many new products even for the tech entrepreneurs there.