Digital Rupee: People in India are using digital payments very fast. Most people transfer money through UPI in just a few seconds. But now another word is being discussed in the world of UPI and the word is Digital Rupee. Many people think that digital rupee and UPI are the same thing, but it is not so. Although both are used for digital payments, but the way they work is completely different. If you also want to use digital rupee, then know from here what is digital rupee and how different it is from UPI. Also, it is mentioned here what risks there may be in it.

What is digital rupee?
Digital Rupee is a central bank digital currency issued by the Reserve Bank of India. In simple language, it is the digital form of cash rupees. Just like you have a 100 rupee note, similarly the digital rupee is also equal to 100 rupees. The only difference is that it is kept in a mobile app or digital wallet.

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What is the difference between UPI and digital rupee?
Now talking about the difference between UPI and digital rupee, the biggest difference is that UPI is a payment system, whereas digital rupee itself is a currency. When you send money to someone through UPI, the money goes from your bank account to the other person’s bank account. At the same time, in digital rupee, the money from the bank account first comes to the digital wallet and then from there it is transferred to the digital wallet of another person. Meaning it is just like a cash transaction.

How does it work?
To use digital rupee, you need a digital rupee wallet of a bank which is linked to this project of RBI. Digital rupees are loaded into the wallet from the bank account. After this, digital money can be sent by scanning the QR code or directly to another wallet.

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What is the risk?
Digital rupee is quite safe, but it does not mean that there is no risk in it. If your mobile is lost and wallet is not safe then there can be trouble.

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What is E-Rupee: Very few of you will know about e-Rupee. Actually, it is a type of digital token issued by the Reserve Bank of India (RBI). So, in a way, it is a digital form of notes and coins. If put in simple language, just like you keep Rs 100 in your pocket, in the same way e-Rupee is also a digital code which remains in your mobile phone. So let us know how it works and what are its benefits.

How does e-Rupee work?

E-Rupee has been specially designed with the help of ‘Blockchain’ or distributed ledger technology. To use it, you will first have to download the digital wallet app provided by the bank, where you can easily withdraw money from your bank account and convert it into e-rupee.

So, while making payment, you can not only use the QR code but can also easily send the digital token to their mobile number. You will not have to face any kind of problem while doing e-rupee transactions. Actually, in this ‘wallet-to-wallet’ transfer is done, so that you do not need the mediation of the bank in any way.

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What are the main benefits of e-Rupee?

Let us know what are the main benefits of e-Rupee. Actually, you do not need any bank account to keep it. Apart from this, it is also used extensively in tokens of smaller denominations (like Rs 10, 20, 50). Apart from this, it is also much more secure than other digital wallets and crypto currencies.

Its special thing is that the possibility of transaction failure is very less in this, where the transaction takes place directly in the wallet. Not only this, it has the great power to work even without internet.

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What is the special difference between UPI and e-Rupee?
Most people make the big mistake of considering e-Rupee as UPI, whereas there is a lot of difference between the two. Actually, UPI is a payment medium which directly transfers money from your bank account to any other account without any problem. So at the same time, e-rupee itself is a currency. But, in UPI, payment stops completely when the bank’s server is down, whereas in e-Rupee, you can not only transfer money easily even without internet but can also do transactions easily.