E-RUPI, also known as Central Bank Digital Currency (CBDC), has emerged as a game-changer in the realm of digital currency. Ajay Seth, the Secretary of Economic Affairs, highlighted its significance at the Ministry of Finance last Friday.
🌐 Digital Currency Impact:
- E-RUPI is a digital currency that serves as a token and holds legal status as a currency.
- It has the potential to halve the cost of remittances from abroad to India.
💸 Cost of Sending Money from Abroad:
- Reports suggest that annually around $100 billion is transferred to India from abroad.
- The current cost of sending money from abroad is around 5%.
- E-RUPI is expected to reduce the remittance cost to 2-3%.
🔄 Ease of Use:
- CBDC can be utilized for remittances or any cross-border payments.
- It simplifies the process of sending money from overseas to India.
🌏 Global Transactions:
- Worldwide, transferring money from one country to another incurs a cost of 8-9%.
- E-RUPI aims to significantly reduce this cost, making global transactions more affordable.
🚀 Launch and Implementation:
- The announcement of CBDC was made during the Union Budget 2022-23 by Finance Minister Nirmala Sitharaman.
- The pilot project for E-RUPI commenced on December 1, 2022, with full-scale implementation.
🤝 Collaboration and Security:
- Indian National Payment Corporation, along with the Finance Service Department, National Health Authority, and Ministry of Health and Family Welfare, collaborated to launch E-RUPI.
- The technology behind E-RUPI ensures secure and confidential transactions, enhancing user privacy.
💡 Anticipated Benefits:
- It is anticipated that the widespread use of E-RUPI will benefit individuals sending money to India from abroad, potentially saving billions of dollars annually.
- The digital currency is a step towards creating a more efficient and cost-effective system for cross-border transactions.
E-RUPI is set to revolutionize the landscape of international fund transfers, providing an innovative and secure solution for users worldwide.
