The digital rupee (CBDC) represents a significant innovation in India's financial landscape. As of March 2023, the total circulation of the digital rupee was valued at ₹16.39 crore. This figure comprises ₹10.69 crore of wholesale CBDC and ₹5.70 crore of retail CBDC, reflecting the growing acceptance and implementation of digital currencies.
The digital rupee (e-rupee) serves as a digital equivalent of India's legal tender. Unlike traditional physical currency, the e-rupee is issued in various denominations through banks, making it accessible for transactions in the digital age.
Among the different denominations, the ₹500 CBDC notes had the highest circulation, amounting to ₹2.71 crore. Following closely were the ₹200 notes, which accounted for 1.16 percent of the total circulation. Other denominations exhibited lower circulation rates, ranging from 0.01 percent to 0.83 percent.
The Reserve Bank of India (RBI) initiated pilot programs for the digital rupee in late 2022. The wholesale segment, termed CBDC (W), was launched in November, while the retail segment, known as CBDC (R), followed in December. These pilot programs aim to test and evaluate the functionality of the digital currency in real-world scenarios.
The primary application for the CBDC (W) pilot program was the settlement of secondary market transactions involving government securities. This initial focus underscores the RBI's intent to integrate the digital rupee into existing financial frameworks.
Initially rolled out with eight public and private sector banks, the retail CBDC has since been expanded to include more banks. A key feature of this expansion is its interoperability with the Unified Payments Interface (UPI) QR codes, enhancing the digital currency's usability.
UPI interoperability is crucial for the digital rupee as it facilitates payments through existing QR codes within the UPI ecosystem. This feature allows users to easily deposit digital rupees into their bank accounts, even if the merchant is not equipped with a CBDC wallet, thus broadening the currency's reach.
The RBI is actively working to increase the volume of digital rupee transactions. The goal is to escalate daily transactions from approximately 15,000 to one million (10 lakh) by leveraging UPI interoperability, thereby promoting widespread adoption of the digital currency.
Q1. What is the current circulation of the digital rupee (CBDC) as of March 2023?
Answer: As of March 2023, the total circulation of the digital rupee (CBDC) was ₹16.39 crore, including ₹10.69 crore for wholesale and ₹5.70 crore for retail CBDC.
Q2. How does the digital rupee (e-rupee) compare to physical currency?
Answer: The digital rupee (e-rupee) functions as a digital representation of legal tender, similar to physical currency, and is issued in various denominations through banks.
Q3. Which denominations of the digital rupee (CBDC) had the highest circulation?
Answer: The ₹500 CBDC notes had the highest circulation at ₹2.71 crore, followed by ₹200 notes with 1.16 percent, while other denominations had lower circulation rates.
Q4. When were the CBDC pilot programs launched by the RBI?
Answer: The wholesale CBDC (W) pilot program was introduced in November 2022, followed by the retail CBDC (R) pilot program launched in December 2022.
Q5. What is the significance of UPI interoperability for the digital rupee?
Answer: UPI interoperability allows e-rupee transactions through existing QR codes, enabling users to deposit digital rupees into bank accounts even without a CBDC wallet.
Question 1: What is the total circulation of the digital rupee as of March 2023?
A) ₹10.69 crore
B) ₹16.39 crore
C) ₹5.70 crore
D) ₹20 crore
Correct Answer: B
Question 2: Which denomination of the digital rupee had the highest circulation?
A) ₹100
B) ₹200
C) ₹500
D) ₹1000
Correct Answer: C
Question 3: When was the CBDC (W) pilot program launched?
A) October 2022
B) November 2022
C) December 2022
D) January 2023
Correct Answer: B
Question 4: What is the aim of the RBI regarding the volume of digital rupee transactions?
A) 5,000 transactions per day
B) 15,000 transactions per day
C) 1 million transactions per day
D) 100,000 transactions per day
Correct Answer: C
Kutos : AI Assistant!
