The proposed digital rupee to be issued by the Reserve Bank of India (RBI) from the next financial year will give a boost to the digital economy. Announcing the launch of Digital Rupee in his budget speech, the Finance Minister said that the introduction of Central Bank Digital Currency (CBDC) will lead to a more efficient and affordable currency management system.
But the question is, with digital payments already in place, how will the digital rupee make a difference? Experts say that digital currency will increase the success rate of transactions.
Manoj Dalmiya, Founder and Director, Prosetz Exchange said that
digital rupee can make a significant difference in terms of
Fast settlement of securities and payments for financial institutions
Low failure rate, UPI has a failure rate of around 1.2-1.3% which is significant considering the large transaction volume
Commission cost is reduced as in case of other paid services
Vinshu Gupta, Founder and Director, Nonblox Blockchain Studio, said that the digital rupee will increase the success rate of transactions in a much shorter time and more efficient manner. UPI is already seeing a decline in the number of transactions
Digital Rupee transactions through UPI can improve efficiency by reducing settlement risks
,UPI Payment Has a success rate of around 98.6%. At a scale of billions of transactions per month, there is a significant gap that still needs to be filled. Digital Rupee transactions through UPI can improve efficiency by mitigating settlement risks and reducing the incidence of such transaction failures. “Many central banks across the country are either considering or experimenting with central bank digital currencies (CBDCs),” said Sumit Gwalani, co-founder of Neobank Fi.
He added that such a global system of CBDCs can also significantly reduce the cost of cross-border transactions with the integrated digital rupee.
The Digital Rupee would complement the digital payment mode and could have a significant impact.
“The available digital payment modes enable it to meet various payment aspects in the country. The digital rupee can make a significant impact in some of the notable areas such as offline payments, programmable/targeted payments (subsidies), cross-border payments and remittances,” said Mihir Gandhi, Partner and Payments Transformation Leader, PwC India.
Will open new opportunities for digital rupee fintech Area.
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