e-Rupee (India’s CBDC): Features, Forms and UPI Debate
Why in the news
With UPI above 700 million daily transactions, experts argue a CBDC still adds inclusion, compliance and efficiency benefits that UPI cannot.
Key facts
- e-Rupee: digital form of the rupee, issued and guaranteed by RBI; legal tender.
- e-R (retail): individuals and businesses. e-W (wholesale): interbank settlement.
- Held in digital wallets or bank accounts; supports P2P and merchant payments.
- Aims: less cash use, inclusion, lower costs, traceable payments that curb black money.
e-Rupee vs cryptocurrency
| Basis | e-Rupee | Crypto |
|---|---|---|
| Issuer | Centralised, RBI | Private, decentralised |
| Status | Legal tender | Not legal tender |
| Value | Stable, 1:1 with INR | Highly volatile |
| Ledger | Controlled by RBI | Blockchain |
| Risk | Low | High |
Exam angle
- CBDC issuer: RBI; variants e-R and e-W.
- Related terms: legal tender, fiat currency.