CBDC V/S UPI : A radical change is coming in the economic practices of the country

- There are many confusions in front of the customer as they have a system of cash transactions that has been going on for years

- A radical change is coming in the economic practices of the country. Digital currency is this grand project of Modi government. There is a poll among economic experts

- RBI says your money is not going anywhere. It has to be converted into digital form. It will also have loose notes but it will be in digital form i.e. administration can be done from mobile....

- Use today and pay tomorrow schemes are being implemented where people used to say borrowing is off. Cryptocurrencies that use the blockchain system are also being used in e-currency

A radical change is coming in the economic practices of the country. Digital currency is this grand project of Modi government. There is a poll among economic experts. Government has answers to every issue but people are afraid that what will be the transaction without money?

People have accepted the changes in various fields due to the digital age and are feeling well by using it in their daily life. People welcome changes at every stage but to everyone's surprise even people who are narrow minded about financial transactions are doing money transactions online.

Now when the government has started talking about digital rupee, people are very confused. People are scaring people by comparing it with demonetisation. People are very cautious about financial transactions. At least people were staying away from cryptocurrencies. People have trusted UPI payment but people stayed away from crypto etc.

When the digital currency transaction is with the Reserve Bank, people will trust the new digital currency, but here it is a matter of disappearing the economic transactions of debt rupees that have been going on for years.

The Reserve Bank is about to stop printing new rupees and digitize everything. It has many benefits for the government. As duplicate notes will stop circulating, the government will not have to spend any money to print the notes and money from terrorist activities will stop. While the other side of the coin is also that the government will have a direct eye on every transaction.

People are used to working with Unified Payment Interface (UPI). Now the government wants to introduce Central Bank Digital Currency (Bhamghab) or E-Rs. No one has any objection to the arrival of digital currency, but people are afraid that the currency of rupees will be eliminated from daily transactions. The most perplexing question in people's minds is that the UPI payment system continues and people are used to it. People associated with business have also adopted UPI payment.

People are looking for what is the change in the system with UPI and digital rupees. Reserve Bank of India Governor Shaktikanta Das has said that the main change between the two is that there will be no intermediaries in e-rupee transactions. The Reserve Bank has said that people are fearing wrongly. All the decisions of the government are for the convenience of the people.

Whenever there is a new digital change people get a bit hesitant and then they understand the system so they forget the traditional old system and adopt the new one. When it came to using ATM cards, people were afraid to use them and now no one climbs the steps of banks. Back then people used to say cash is king. Back then it was called Bank Balance is King. Surprisingly, credit card usage has also doubled.

Where people used to say borrowing is off, use today and pay tomorrow schemes are being implemented. Cryptocurrencies that use the blockchain system are also being used in e-currency.

People still do not understand that then what to do with our rupees? The Reserve Bank says your money is not going anywhere. Its digit is to be converted into rupees. It will also have loose notes such that you can keep notes of 10, 15, 100 or 500 but they will be in digital form, meaning transactions can be done from mobile.

The cash we use today is given by the Reserve Bank. Now, instead of this cash, RBI will give digital currency, which is called token. At present the money in our bank is transacted through bank transfer, UPI or cash. Some use cryptocurrencies.

Digital currency has been used by Nigeria. As people use digital currency more, the Nigerian government has banned ATMs. Written in a way that a common man can understand, in UPI there is a transaction between two banks and its platform is UPI. Whereas in digital rupees there is no other platform. It deals directly with the owner.

If we write it in a way that common man can understand, in UPI there is a transaction between two banks and its platform is UPI. While in digital rupee there is no platform in between. It deals directly with the owner.

Currently, customers can withdraw money from the bank or ATM and use it wherever they want. But now it is going to happen that no one will hold his cash. Everyone is set to use digital currency in transactions. Now in the new system the withdrawal from the bank will be online which the customer can keep in his digital wallet. It is planned that digital currency can be used even where there is no internet.

E rupees will be available from four banks under the government's pilot project. Currently, the four banks that have been entrusted with the work include State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank.

There are many dilemmas facing the customer. Because in their mind there is a system of cash flow that has been going on for years. The digital age has brought many changes and people have adopted them. There have also been changes in the financial sector and people have used it through UPI, now E will come. People will welcome it too. Because when everywhere will have its currency, people will also get used to it.