You can apply for E Rupee Wallet in this way.Image Credit source: da-kuk/E+/Getty Images
You may have heard about digital currency and wondered if you should try it. This is neither a cryptocurrency nor a new UPI app. It is simply a digital form of India’s sovereign currency, which is issued directly by the Reserve Bank of India. Consider it electronic cash. This is not money lying in your bank account, but a digital token of the Central Bank which you can store in your wallet and use for payment. Let us also tell you how to apply for digital rupee wallet and what is its process?
First, check if your bank supports it or not
Digital rupee is still being implemented in a phasewise manner. Only select banks are participating in the pilot project of Retail e-Rupee (often called e-₹-R). Banks like State Bank of India, HDFC Bank, ICICI Bank and Axis Bank have been part of this project in different phases.
So the first step is easy: visit your bank’s website or mobile app and see if they offer a digital Rupee wallet. Some banks provide direct access through a separate CBDC app, while others integrate it into their existing mobile banking platform.
Download the Bank’s CBDC App
In most cases, a digital Rupee wallet works through a specific mobile application provided by your bank. Find the official app on Play Store or App Store. To avoid fake apps, ensure that it is an app published by your bank.
After installation, log in with the registered mobile number linked to your bank account. Since this is a regulated product, your KYC information is already available with the bank, so there is usually no lengthy onboarding process. You may have to set a separate PIN for the digital Rupee wallet.
Create and activate your wallet
After logging in, you will be asked to create a digital Rupee wallet. This wallet is separate from your savings account, even though it is linked to it. Then you can transfer money from your bank account to digital Rupee wallet. The amount you transfer is converted into e₹ tokens. These are deposited in your wallet and can be used for payment. The process is similar to loading money into a prepaid wallet, except here the balance reflects the currency issued by the Central Bank.
Start using Digital Rupee
Once funds are credited to the wallet, you can use it to make payments to merchants who accept digital rupee payments. Transactions usually happen through QR codes like UPI. The main difference is that in digital rupee transactions, there is a direct transfer of the central bank’s digital currency, and not a bank-to-bank settlement. You can also transfer e-Rupee to another person’s digital Rupee wallet, provided both of you are using a supported platform.
Be sure to keep these things in mind
There may be a limit on the amount you can hold in your wallet. Since this product is currently being launched in a phased manner, there may be changes in features and limitations. Interest is not earned on digital rupee, because it has been designed to work like cash. Therefore it is not an alternative to savings account or FD. Also, its use is voluntary. If you are comfortable using UPI, cards or net banking, there is no need to open a digital Rupee wallet.
Is it worth applying?
For most people, for now, digital currency is more a means of understanding the future of payments than a replacement for existing payment methods. This is a useful way to understand the practical workings of central bank digital currencies. If your bank offers it and you’re interested in learning about it, it’s very easy to apply. Download the official app, activate your wallet, transfer funds and try a small transaction. At least, you’ll be able to understand the system first-hand instead of just reading about it. And since it’s backed by a central bank, you’re not getting involved in an uncontrolled experiment.
