On November 1, 2022, The Reserve Bank of India launched India's first digital currency 'e₹' .
By Srikanto Mandal 30 Sept, 2022
For now this digital currency will mainly be used to settle secondary market transactions in government securities.
It is the country's first recognized digital currency and is named Central Bank Digital Currency or CBDC.
CBDC is Central Bank Digital Currency, which is actually a digital form of RBI issued notes.
Instead of printing money, RBI will issue electronic tokens or accounts, whose value will be equivalent to Indian rupees.
These CBDCs will be of two types. The first is CBDC-W (Wholesale) and the other is CBDC-R (Retail).
CBDC-W is used for wholesale market. It will be restricted to certain organizations.
And CBDC-R (Retail) will be used for transactions in the retail market which means CBDC-R can be used by common people.
This digital currency (CBDC) will reduce the pressure on liquid money and also reduce the cost of printing money.