India’s experiment with the retail digital rupee (e- ₹ R) is off to a slow start with few merchants and limited volumes, even as banks remain optimistic about the promise of a digital currency
Interestingly, amid a war for deposits in the system as banks jostle to raise the liabilities to fund the elevated credit growth, the overall deposits in the system declined marginally during the fortnight as against the Rs 177.88 lakh crore as on November 4. Bank Credit Grows Nearly 17% for Fortnight Ended November 18: RBI.
Digital Rupee pilot: The e₹-R will be a digital token, and will represent legal tender. The denominations will be the same as the paper currency and coins in circulation currently.
The RBI said users will be able to transact with the digital rupee through a digital wallet offered by the participating banks and stored on mobile phones/devices.