Advertisement
trendingNowenglish2542498https://zeenews.india.com/economy/indias-digital-rupee-receives-lukewarm-interest-on-the-launch-of-pilot-project-on-dec-1-report-2542498.html

India's digital rupee fails to excite interest, bankers say

Another issue is that, since e-rupee transactions do not wholly replace those using established procedures, they add to banks' accounting work.

  • The RBI has devised the e-rupee basically as a digital alternative to cash - one using blockchain distributed-ledger technology.
  • The e-rupee, one of several central bank digital currencies (CBDCs) being tried around the world, had a drawback.
  • Another issue is that, since e-rupee transactions do not wholly replace those using established procedures.

Trending Photos

India's digital rupee fails to excite interest, bankers say India's digital rupee fails to excite interest.

New Delhi: A month into India's pilot project for using an official digital rupee for inter-bank and institutional transactions, stakeholders are seeing no benefits, several bankers said. Seven bankers told Reuters that using the e-rupee of the Reserve Bank of India (RBI) was much the same as internet-based banking that users were already satisfied with. The RBI has devised the e-rupee basically as a digital alternative to cash - one using blockchain distributed-ledger technology, to some degree anonymous and most relevant to consumers and retailers. But in the initial trial banks have been using it for settlements with each other - with no particular advantage, according to bankers.

ALSO READ | Court jamadar suspended for taking tips from lawyers via Paytm in court premises -- Read full story here

Indeed, the e-rupee, one of several central bank digital currencies (CBDCs) being tried around the world, had a drawback, they said: each trade using it had to be settled individually, whereas trades in the established interbank payment system were first netted off then settled in bulk with the clearing corporation.

ALSO READ | Digital Rupee launched in India -- Here's understanding e₹-R in 10 Key points

"There is no advantage over internet-based transactions and the lack of netting is actually a big drawback," said an executive at a private bank that had used wholesale e-rupees in the pilot program.

Another issue is that, since e-rupee transactions do not wholly replace those using established procedures, they add to banks' accounting work.

"At the moment it is more inefficient, because the trade volumes continue to be low on this, which means we have to manage cash as well and it results in more paperwork and additional labour," said a senior executive at a state-owned bank, also part of the pilot.

Stay informed on all the latest news, real-time breaking news updates, and follow all the important headlines in india news and world News on Zee News.

NEWS ON ONE CLICK