{"id":220874,"date":"2023-01-03T18:40:57","date_gmt":"2023-01-03T13:10:57","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=220874"},"modified":"2023-01-04T16:27:44","modified_gmt":"2023-01-04T10:57:44","slug":"popularize-the-e-rupee-even-at-the-cost-of-upi","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/popularize-the-e-rupee-even-at-the-cost-of-upi\/","title":{"rendered":"Popularize the e-rupee even at the cost of UPI"},"content":{"rendered":"\n

Source<\/strong>: The post is based on the article\u00a0\u201cPopularize the e-rupee even at the cost of UPI\u201d<\/strong>\u00a0published in\u00a0the\u00a0Livemint\u00a0<\/b>on\u00a03rd January 2023<\/strong>.<\/p>\n

Syllabus<\/strong>: GS 3 \u2013 Indian Economy and issues relating to planning, mobilization, of resources.<\/p>\n

Relevance<\/strong>: About the promoting e-rupee and concerns associated with the Unified Payments Interface (UPI).<\/p>\n

News<\/strong>: Recently, the supreme court upheld the demonetization done by the government in 2016. The government plans to improve the rupee digitisation. But, India’s cash intensity remains roughly on the same incline as it was earlier.<\/p>\n

About the success of Unified Payments Interface (UPI)<\/h5>\n

The UPI has been a spectacular success since its 2016 launch. It is designed for instant transfers between bank accounts done via mobile phones.<\/p>\n

According to the National Payments Corporation of India (NPCI), UPI operator, UPI processed more than 74 billion transactions in 2022. This is up 90% over 2021. It is worth almost \u20b9126 trillion, a 76% leap from 2021.<\/p>\n

With 381 banks in the loop, net-linked handsets everywhere and UPI adoption now so wide.<\/p>\n\n\n\n
Must read: UPI and Digital Payments in India \u2013 Explained, pointwise<\/a><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
What are the concerns associated with the UPI?<\/h5>\n

The government levies no user fee for UPI transactions<\/strong>. Public funds are used in strengthening UPI and funding bank transfers done by UPI. The government justifies that it\u2019s a \u201cdigital public good with immense convenience for the public and productivity gains for the economy.\u201d<\/p>\n

Why India should promote RBI\u2019s retail e-rupee instead of UPI?<\/h5>\n

This is because a)<\/strong> The digital rupee will better serve the cause of economic stability<\/strong> than an over-reliance on banks that square off transfers among themselves, b) <\/strong>With increasing UPI Payments, the public money spent for strengthening it will also increase. But this is not the case with the e-rupee, c)<\/strong> The mass usage of the e-rupee would involve the circulation of money that\u2019s a direct liability of the central bank. On the other hand, UPI relies more on money in bank accounts.<\/p>\n\n\n\n
Must read: e-Rupee: Here\u2019s a Quixplained on India\u2019s first official digital currency<\/a><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article\u00a0\u201cPopularize the e-rupee even at the cost of UPI\u201d\u00a0published in\u00a0the\u00a0Livemint\u00a0on\u00a03rd January 2023. Syllabus: GS 3 \u2013 Indian Economy and issues relating to planning, mobilization, of resources. Relevance: About the promoting e-rupee and concerns associated with the Unified Payments Interface (UPI). News: Recently, the supreme court upheld the demonetization… Continue reading Popularize the e-rupee even at the cost of UPI<\/span><\/a><\/p>\n","protected":false},"author":10311,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10501],"class_list":["post-220874","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-live-mint","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":1700786483,"cached_date":1703416292},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/220874","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10311"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=220874"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/220874\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=220874"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=220874"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=220874"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}