Digital Rupee Vs UPI: 7 Key Differences Between RBI’s E-Rupee And UPI

So, how is RBI’s e-Rupee different from UPI?

1) The biggest difference between e-rupee and UPI is that e-rupee itself is a currency in digital form which enables digital transactions, whereas is i Archit Gupta, Founder and CEO, Clear said that Clear is a platform through which transactions happen digitally.

1) Bank acts as an intermediary in every UPI transaction. As a result, in the UPI app, the bank account is debited and money is sent to the recipient’s bank. You can withdraw paper money from a bank, keep it in your wallet and use it to make purchases at stores, said Nidhi Agarwal, founder of Space Mantra.

“In a CBDC, you will withdraw virtual money and keep it in your mobile wallet. When you pay at a store or someone else, the money is transferred from your wallet to theirs. The bank does not route the payment Or doesn’t act as a middleman,” he said.

3) Archit Gupta told that just like physical cash, you can withdraw e-money from your bank account, put it in your phone wallet and spend money from the wallet at any shop. Whereas while using UPI you instruct your bank to transfer money from your account to the vendor’s bank account.

4) According to Archit Gupta, UPI is a payment platform, debit or credit cards, net-banking, mobile wallets, etc. can be used to make payments. in the form of In this respect using your mobile phone is like spending physical money in digital form.

5) GCL CEO Ravi Singhal said that when we pay in rupees the amount is deducted from your bank. On the other hand, in E Rupees, the amount is directly deducted from your E Rupees. you have bought.

“When I use the UPI app my bank account gets debited and money is transferred to the recipient’s bank account. Carrying paper currency in your wallet and spending it at a shop is as easy as withdrawing it from a bank and keeping it in your wallet,” explained Amit Gupta, MD, Saag Infotech.

6) This electronic form of sovereign currency is operated by the RBI and does not involve any individual handler, as is the case with UPI transactions. Hence, payments with e-Rupee are direct and instant,” said Kumar Sourav, Global Mobile Business Head, Edcounty India.

7) Another intrinsic property of a CBDC is its anonymity, similar to the case with physical cash. However, the intermediaries (banks) have the data in UPI transactions, Kumar Sourav said.

The pilot phase of the digital currency went live on 1st December 2022 covering four cities (Mumbai, New Delhi, Bangalore, Bhubaneshwar) and four cities. banksSBI, ICICI, Yes Bank and IDFC.