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A single winning ticket for Friday’s $1.35 billion Mega Millions jackpot drawing was sold in Maine

A single winning ticket for Friday’s $1.35 billion Mega Millions jackpot drawing was sold in Maine

One ticket sold in Maine beat the eerie odds of Friday the 13th and is set to claim the Mega Millions jackpot of about $1.35 billion, the lottery said. Friday night’s winning numbers were 30-43-45-46-61 with a Mega Ball of 14. Officials said the estimated annuitized jackpot could be worth $1.35 billion while the potential lump sum cash payout is $724.6 million. “Congratulations to the Maine…

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Budget 2023: Section 80C limit change to tax-free pension/annuity – what insurers are expecting

Budget 2023: Section 80C limit change to tax-free pension/annuity – what insurers are expecting

Budget 2023 expectations: With Budget 2023 just a few weeks away, the insurance industry is expecting big announcements in favour of policyholders and the sector. “The Union Budget is an opportunity to introduce new reforms for the betterment of the citizens and the nation at large. As the life insurance sector, our paramount interest has always been to insure more citizens and ensure they have…

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How to Avoid Tax on Cryptocurrency in India?

How to Avoid Tax on Cryptocurrency in India?

Introduction Indians, by the millions, have invested in cryptocurrency. The value of Bitcoin has rapidly increased, which is to blame. During the COVID-19 outbreak, millions of Indians expressed interest in cryptocurrency to achieve their financial goals. Their revenue grew greatly. The Indian Income Tax Department, RBI (Reserve Bank of India), and the Central Government noticed this. The…

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Top 5 Performing US Shares in 2023

In this article, we discuss Top 5 Performing US Shares to buy heading into 2023. If you want to see more stocks in this selection, check out 5 Best American Stocks To Buy Heading Into 2023. 

In this article, we discuss Top 5 Performing US Shares to buy heading into 2023. If you want to see more stocks in this selection, check out 5 Best American Stocks To Buy Heading Into 2023.  As per Bank of America, a new bull market could emerge in 2023 after the Federal Reserve aggressively hiked interest rates in 2022 in a bid to control inflation. While most investors are focused on the Fed’s…

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Digital Currency in India, Digital Rupee, All You Need to Know About New Digital Currency

The Reserve Bank of India (RBI) has commenced the first pilot launches of the Central Bank Digital Currency (CBDC) or the digital rupee-retail segment for India from November 1, 2022. Earlier, the apex bank released a concept note in this regard on October 7, 2022. 

The CBDC is a digital form of currency notes that a central bank issues. Digital currency or the rupee is an electronic form of cash, which can aid in contactless transactions. Simply said, it remains a legal tender in digital form.

Also, the core idea behind introducing the digital rupee is to provide an additional payment avenue to users, not to replace the existing payment systems.

The focus of future pilots is to introduce CBDC of two types: retail (CBDC-R), which would be potentially available for use by everyone, and wholesale (CBDC-W) which will be designed for restricted access to select financial institutions.

The central bank has identified nine banks for participation in the pilot launch, which includes the State Bank of India (SBI), Union Bank of India, Bank of Baroda, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, HSBC, and IDFC First Bank.

The use case for this particular pilot is the settlement of secondary market transactions in government securities (G-sec bonds). The use of the digital rupee is expected to introduce more efficiency in the interbank market.

The Centre announced the launch of the digital rupee from the financial year (FY) 2022-23 onwards in the Union Budget on February 1, 2022.

Digital Rupee: RBI’s Central Bank Digital Currency (CBDC) pilot starts – What should retail users know?

Digital Rupee Features, FAQ, Expected Benefits: RBI has not yet launched a Digital Rupee pilot for the retail segment. It will launch the first pilot of the Digital Rupee (e₹-R) for the retail segment within a month.

Central Bank Digital Currency (CBDC) has finally come to India with the start of the pilot phase of the Digital Rupee rollout from today (November 1, 2022). However, the Reserve Bank of India (RBI) has launched the first pilot of the Digital Rupee for the wholesale segment (e₹-W) only.

Experts believe that CBDC is one of the biggest developments in the financial world, the full impact of which will be visible in near future. India already has a stellar record as an early adopter of technology with the rapid adoption of UPI and QR-based payments across the country. With CBDC, it is expected that India will take giant strides in the world rapidly progressing towards the adoption of digital currencies.

RBI has not yet launched a Digital Rupee pilot for the retail segment. The central bank will launch the first pilot of the Digital Rupee for the retail segment within a month. It will be launched for closed user groups comprising customers and merchants. RBI will share details in this regard soon.

The current rollout of the Digital Rupee is meant for the Wholesale segment only. According to RBI, the use of the Digital Rupee in the wholesale segment would make the interbank market more efficient. Moreover, the settlement in central bank money would reduce transaction costs by preempting the need for settlement guarantee infrastructure or for collateral to mitigate settlement risk.

In future, RBI plans to launch pilot projects for other wholesale transactions and cross-border payments.

Banks participating in Digital Rupee – Wholesale segment pilot are State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank and HSBC.

Expected features of Digital Rupee for Retail Users

Digital Rupee (e₹-R) may play a big role in providing a safe and reliable means of payment for direct transfer programs of government welfare programmes. If properly monitored, CBDC will help promote inclusive and innovative payments, according to experts.

With Digital Rupee, efficiency, lower fee requirements, faster settlement, increased transparency and lower privacy would translate to everyday lives slowly but will have both positive and negative externalities.

“CBDCs can play a big role in the government’s push to provide a safe and reliable means of payments for direct benefit transfer programs of government welfare programs. They promote inclusive and innovative payments if properly monitored, and the risks involved are overcome through effective means,” says Manish Sharma, Founding Partner of Centricity Wealth Tech.

If leveraged for government schemes, Digital Rupee would ensure no leakage and automated release of payments on the completion of certain tasks.

Will Digital Rupee be useful in retail payments?

CBDCs can also be used for retail payments. Payment instruments could be made available for payment transactions to be made via CBDC. Retail CBDC distributed by the RBI and commercial banks would have to be held in electronic wallets/ accounts by the end users.

Digital Rupee would enable payment means between the following:

Consumer to consumer

Consumer to business and

Business to business.

Will Digital Rupee replace physical currency?

Digital Rupee will not replace physical currency. It is meant to complement physical currency.

Digital currency advocated by the central banks is to complement and not replace the current forms of money and will provide users with an additional way of payment, with the existing payments systems still being in place.

The digital rupee ideated by RBI will be generated through an advanced payment system which is affordable, accessible, convenient, efficient, safe, and secure and will further bolster,” says Rachit Chawla, CEO, Finway FSC. Read more about Future of Financial Sector by 2030.

Will Digital Rupee boost lending?

Instant lending to micro, small and medium enterprises (MSMEs) in India can be possible with the help of CBDC. As more MSMEs use CBDC, banks can draw up a more accurate borrower risk profile. This can be used to promptly meet MSME financing requirements.

Moreover, the stimulus for MSMEs can also be disbursed quickly from the central bank. This can help businesses grow and sustain themselves during periods of uncertainty where the availability of cash is limited.

Will Digital Rupee transactions be traceable?

Digital Rupee transactions will be traceable. Experts say that CBDC’s traceability may help retail users and MSMEs prove their creditworthiness.

Will Digital Rupee be based on blockchain?

Experts say that the CBDC for retail would likely be on a Distributed Ledger Technology and not necessarily the blockchain.

There would be a transparent overview of transactions between participants. The automation ability and instant settlement will help speed up the overall financial infrastructure on which retail payments operate.

Will Digital Rupee have private keys like cryptocurrencies?

There are some concerns about the private keys of the Digital Rupee and the risks associated with losing a private key. However, it seems likely that Digital Rupee would not be based on a self-custodial model.

Will Digital Rupee be exchangeable with cash?

Experts expect there would be fungibility of the CBDC with cash for retail. This would make it an opt-in opt-out kind of system.

Will Digital Rupee help in tax collection?

Digital Rupee may make it easy to collect taxes through smart contracts.

There are also interesting ways for the tax to be collected through smart contracts linked to the CBDC, but there are various other developments in law, policy and education which would be required before a full retail rollout.

Related Queries in India: India Digital Currency, How to Buy Digital Currency in India, Digital Currency in India, RBI Digital Currency Price, Indian Digital Currency, How to Buy Digital Rupee, How to buy Indian Digital Currency, Digital Rupee, RBI Digital Rupee, How to buy CBDC Currency, RBI Digital Currency Name, Coinmarketcap

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Digital Currency in India, Digital Rupee, All You Need to Know About New Digital Currency

State Bank of India (SBI), Bank of Baroda, ICICI Bank and IDFC Bank are among the nine participating lenders that are said to have cut the inaugural CBDC deals for settlement of trades in g-secs, three people familiar with the matter.

The Reserve Bank of India (RBI) has commenced the first pilot launches of the Central Bank Digital Currency (CBDC) or the digital rupee-retail segment for India from November 1, 2022. Earlier, the apex bank released a concept note in this regard on October 7, 2022.  The CBDC is a digital form of currency notes that a central bank issues. Digital currency or the rupee is an electronic form of…

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$70M Max Millions lottery jackpot finally claimed

$70M Max Millions lottery jackpot finally claimed

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How To make Money from Website

How To make Money from Website

Disclosure: Some links are affiliated so we may earn commission on referring you to a service. There’s no extra cost to you, but it does support our site and could entitle you to exclusive offers. Once you’ve got your own Bluehost website online (click here for our guide), there’s an endless stream of opportunities to start making money. It’s not uncommon for committed bloggers to give up their…

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How To Double Your Money: Top 3 Secrets To Boost Your Money

How To Double Your Money: Top 3 Secrets To Boost Your Money

By using these personal finance rules, you can make the right strategy to double your investment in the shortest possible time.If you keep financial discipline and follow the golden rules of personal finance, you can make the right strategy to double your investment. Who wouldn’t want to double their money? That too without falling into the trap of some Ponzi scheme? But the question is, is it…

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10 Weapons You Must Have, To Become Financially Free.

10 Weapons You Must Have, To Become Financially Free.

Bookworms make bank. Don’t believe us? Just look at the facts.  It’s no coincidence that some of the world’s richest people are also dedicated readers.  Warren Buffet, the iconic business tycoon and investor, is one of the most committed readers around. Buffet says that he spends up to 80% of his day reading. According to him, spending more time reading and thinking means he’s less likely to…

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6 Financial Tips for Entrepreneurs Launching a Startups

6 Financial Tips for Entrepreneurs Launching a Startups

Financial management for startups is, without a shadow of a doubt, the key to any startup’s success. There’s going to be myriad of things to manage and keep track of and it can become quite overwhelming without a solid plan in place. You’ve got the idea, developed a business plan and jumped into building your very own business from the ground up. But there can be several pitfalls that new…