{"id":258975,"date":"2023-09-06T21:31:19","date_gmt":"2023-09-06T16:01:19","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=258975"},"modified":"2023-09-06T21:31:19","modified_gmt":"2023-09-06T16:01:19","slug":"rbis-e-rupee-could-use-upi-for-a-reformist-leap","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/rbis-e-rupee-could-use-upi-for-a-reformist-leap\/","title":{"rendered":"RBI\u2019s e-rupee could use UPI for a reformist leap"},"content":{"rendered":"\n

Source<\/strong>– The post is based on the article \u201cRBI\u2019s e-rupee could use UPI for a reformist leap\u201d <\/strong>published in the \u201cmint\u201d <\/strong>on 6th September 2023<\/strong>.<\/p>\n

Syllabus: <\/strong>GS3 – Indian Economy – Mobilisation of resources<\/p>\n

Relevance- <\/strong>issues related to digitalisation of banking system<\/p>\n

News<\/strong>– Recently, State Bank of India has integrated UPI with e-rupee wallets designed for holding the RBI’s central bank digital currency.<\/p>\n

What are some facts about UPI?<\/strong><\/h2>\n

The UPI system is administered by the National Payments Corporation of India. It is<\/strong> a consortium of financial institutions. <\/strong><\/p>\n

The UPI platform is built upon India’s state operated Aadhaar system<\/strong>, which utilises biometric IDs<\/strong> to verify the identities of bank and telecom users. <\/strong><\/p>\n

What are the benefits associated with integrating UPI with e-rupee wallets designed for holding the RBI’s central bank digital currency (CBDC)? <\/strong><\/p>\n

E-rupee holders can now use UPI to conduct swift retail transactions<\/strong> by scanning QR codes. <\/strong>This integration is expected to provide increased liquidity to e-rupees<\/strong>. It could potentially transform UPI <\/strong>in the future.<\/p>\n

What will be the potential role of a CBDC with RBI’s e-rupee?<\/strong><\/h2>\n

it can be a novel medium for offering a fast, cost-effective, and secure alternative<\/strong> to cumbersome cross-border money transfers<\/strong>. Such adoption would also support economic growth, international trade, and financial inclusion. <\/strong><\/p>\n

From a strategic perspective<\/strong>, using RBI’s digital tokens <\/strong>for trans-border transactions <\/strong>could potentially serve as a barrier against the adoption of cryptocurrencies and capital flight.<\/strong><\/p>\n

What is the significant distinction between CBDC and UPI?<\/strong><\/h2>\n

CBDC represents a direct claim on the currency issuer, RB<\/strong>I. These IOUs are backed by RBI’s own guarantee,<\/strong> making them exceptionally secure.<\/p>\n

In contrast, UPI relies on the safety of commercial banks<\/strong> participating in the payment process<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source– The post is based on the article \u201cRBI\u2019s e-rupee could use UPI for a reformist leap\u201d published in the \u201cmint\u201d on 6th September 2023. Syllabus: GS3 – Indian Economy – Mobilisation of resources Relevance- issues related to digitalisation of banking system News– Recently, State Bank of India has integrated UPI with e-rupee wallets designed… Continue reading RBI\u2019s e-rupee could use UPI for a reformist leap<\/span><\/a><\/p>\n","protected":false},"author":10320,"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":[216,8184,11125],"class_list":["post-258975","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-indian-economy","tag-mint","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/258975","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\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=258975"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/258975\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=258975"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=258975"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=258975"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}