Abstract :
A digital rupee is a virtual form of legal money. Apparently, the future of money is moving towards the secured, encrypted, centralised and transparent with the induction of the erupee, proclaimed to be the fiat currency. It is the way to combat the black money, and hustles of the economy and ensures a world-class payment system1. While the country is
eager to know what exactly the digital rupee is? and how does it function?
This paper attempts to explain the ongoing buzz around the term ‘e-rupee’ and clarify the confusion with the cryptocurrency as a private currency, while the digital rupee is regulated by RBI and therefore the name CBDC (Central Bank Digital Currency. Also, the UPI is the platform to pay money where the digital rupee itself is the authorised currency.
This paper justifies that digital currency is just the virtual form of physical currency, there is no big difference
between and subject to the same limitations and rules under the tax implications and banking limits. This paper elucidates how the e-rupee function in wholesale and retail transactions and suggest analysing the practical application in the pilot program and bringing in recommended changes
Keyword :
Keywords: Currency, CBDC, Cryptocurrency, Digital Rupee, pilot program, UPI