Reliance Retail, the retail subsidiary of Reliance Industries Limited, made news lately by being the first firm to accept digital rupees [e-R]as payment. This historic move by the corporation has opened up new channels for digital transactions in India and established a pattern for other businesses to follow.
“This historic step of pioneering digital currency adoption in our shops is in accordance with the company’s strategic aim of offering the power of choice to Indian customers.” “With more Indians willing to transact digitally, this initiative will assist us in providing yet another efficient and secure alternative payment method to customers at our stores,” said V Subramaniam, Director at Reliance Retail, in a statement.
The Significance of the Digital Rupee
The digital Rup… is the digital form of the Indian national currency and is seen as a significant step forward in the country’s transition to a paperless economy. Reliance Retail’s adoption of the digital rupee is likely to bolster the government’s attempts to promote digital transactions and reduce reliance on physical currency.
Benefits of Digital Rupee for Consumers
Reliance Retail’s adoption of the digital rupee is expected to provide several benefits to customers. For starters, it will offer consumers a safe and convenient method of payment. The digital rupee is readily transferable from one account to another, removing the need for actual currency. Furthermore, because all transactions will be recorded in a centralised database, it will reduce the risk of fraud and counterfeiting.
Benefits of Digital Rup. for Businesses
Reliance Retail’s adoption of the digital rupee is also expected to bring several benefits to businesses. Businesses will be able to save money on costs associated with handling physical cash, such as storage, transportation, and security. It will also provide businesses with real-time data on their financial transactions, allowing them to make informed decisions and improve overall efficiency.
Future of Digital Transactions in India
“The history of money has had a riveting journey, evolving through barter, coins, and notes, and now is in its new digital avatar,” said Rajeev Agrawal, Founder & CEO of Innoviti Technologies Private Limited. Despite the fact that India’s digital payment revolution has resulted in an exponential increase in e-transactions, cash payments remain popular. The digital rupee meets the needs of consumers who still prefer the trust, security, and finality of physical currency. “Innoviti is thrilled to be the first to provide a strong technological platform on which individuals can now transact.”
The Reserve Bank of India (RBI) first introduced e-R for retail markets across select Indian cities in a pilot mode on December 1, 2022, with access limited to customers of certain identified banks.
It was initially limited to four cities: Mumbai, New Delhi, Bengaluru, and Bhubaneswar, but it was later expanded to nine more.
This pilot has identified eight banks, including ICICI Bank and Kotak Mahindra Bank, for phased participation. Customers of these banks will be able to transact with them via a digital wallet that they will provide.
The pilot’s scope will be gradually expanded to include more banks, users, and locations as needed.
Enterprise-Class OKR Platform Profit.co Raises $11M in Funding Led by Elevation Capital