How e Rupee Payment Works | e Rupee Wallet | Load & Money Transfer Money

The pilot trials phase one have already been started on December 1, 2022 in four cities namely Mumbai, New Delhi, Bengaluru and Bhubaneswar and the bank’s associated are State bank of India, ICICI bank, Yes bank and IDFC bank. So if your are lucky enough you can get your hands on e Rupee and experience the newly transformed economy.

How to use e Rupee ?

The e-Rupee is issued by the Central bank of India. You will have to link your bank account to your e wallet. So let’s me first walk you through how to register and get access to your e wallet.

Steps to register for your e-Wallet

1. Download the CBDC app from your play store or AppStore.
2. Now you will have to put your mobile number.
3. Enter the mobile number that is connected to your bank account.
4. Once you enter the details your registration process will be successfully completed.
5. A unique ID will be generated to your specific ID.
6. Your e wallet is successfully created !

Now this e wallet is the basic one where you will not need KYC. But this wallet will have a specific limit on the amount you can have in your e wallet. So if in case you plan on exceeding the amount you will have to go to the next level and do the KYC that is know your customer.
The only document required for KYC know your customer is your Aadhar Card. You just will have to enter your Aadhar card details and link your bank account to your wallet.

SBI e Rupee registration process

If you have an account in the State Bank of India then there is a good news for you. You can now make payments via e Rupee.

Steps to use e Rupee through the SBI e Rupee app are as follows –

1. Download the State bank of India’s e-RUPI app from the playstore.
2. Accept the terms and conditions.
3. Click on ‘next’.
4. Then you have to click on ‘Start Registration’.
5. You will be shown two options if you use two SIM cards.
6. Click on the SIM card that is connected to your State bank of India’s bank account.
7. Then click on verify sim.
8. Once you have successfully verified your sim you will then see an option to add a pin to your app.
9. Then you will have to enter your name.
10. Once you enter your name you will receive a recovery code as well.
11. Save the recovery code.
12. Then you will have to create a six digit PIN code.
13. Enter the pin of your choice.
14. You will then receive your wallet address.
15. Then you will see an option to like your wallet with your account in state bank of India.
16. Click on link my account.
17. Then you will have to enter the last six digits of your debit card.
18. You will have to enter the expiry date of your debit card next.

How to load the money in e Rupee Wallet ?

Now you will have to load the money from your account to your wallet. The steps to load your wallet are as follows-

1. Go to home page.
2. You will see a load option. Click on that.
3. Then you will see the notes of denominations from Rs 10, 20, 50, 100, 200, 500 and 2000. You will also see 50 paise, one rupee and two rupee coins.
4. Click on the notes you want to load.
5. Check the total amount that is displayed above.
6. Then you will have to enter your six digit PIN code.
   You are all set to use your e rupee ! You can also redeem and even transfer the money back to your account.

How to pay using the e-Rupee?

The best way to explain this is by taking a real life example. So let us assume that you have to buy a book worth rupees 150. First of all there will be a few merchants who will accept e Rupee. So you will be able to buy anything from those merchants. Now you go to buy that book.

1. Go to your e wallet app.
2. Make sure that you have enough balance.
3. Check the amount you want to pay.
4. Now go to the denomination of notes available. So let us assume you have in total Rs 200 in your wallet. So the denominations available can be one hundred rupee digital note, one fifty rupee digital note, two twenty rupee digital notes and one ten rupee digital note. So now you can choose between the denominations. So you can either choose one hundred rupee digital note and a twenty rupee digital note or two fifty rupee digital notes and a twenty rupee digital note. Also even if you do not have the exact change or the exact denominations of notes that you need no worries. The seller will send the remaining amount from their wallet as this is a two way payment.
5. Now once you have chosen your denomination of notes you can click on ‘Proceed to pay’.
6. Once you click on proceed to pay your payment will be done successfully.

How to receive payments via e Rupee ?

I am a merchant how can I receive payments from my customers via e Rupee ?

So you have to first note that the payments will be exactly like the payments done in physical form. But do not get confused between net banking, mobile banking and e Rupee or CBDC that is central bank digital currency. The CBDC central bank digital currency it is entirely controlled by the central bank of India. So as a merchant you will also have to register for the e wallet. The registration steps are just entering your mobile number and linking your bank account. You will have a specific unique ID as a merchant. So you are now set to accept payments from the customers via e Rupee.

You will also have a QR code through which customers can scan and pay the amount to your e wallet. Now also note that when the customer makes the payment you will be able to see the various denominations of note that the customer has sent (paid). You have to go to your e wallet n make sure of what type of denominations you have. It can be of Rs 10, 20, 50, 100, 200, 500 and 2000. Also along with notes coins will also be available. So to break it in the most simple form for you it is just like physical payments that is just like when a customer hands you notes in the physical form.

Similarly the customer will now be able to pay you the exact same notes but just in digital form. This is how you will receive payment from your customers using CBDC that is central bank digital currency- e Rupee or e-RUPI.

How is e Rupee different from UPI ?

Let’s assume that you have to transfer money via UPI to someone. So you will first have to make a request and forward it to your bank. Now the bank approves and then let’s you transfer the money you want to transfer to that specific account. So in this case the bank is responsible for making the payment. But with e Rupee of CBDC that is central bank digital currency you do not need any bank to act as an intermediary. It is simply similar to paying as you do in the physical form. So you directly can transfer the required money from your e wallet to the person or his / her e wallet.
It is exactly similar to the physical cash that we have been using since years but this is just in digital form using CBDC central bank digital currency or e Rupee.

Benefits & Disadvantages of e Rupee

What are the benefits and the disadvantages of e Rupee ?

The implementation of CBDC central bank digital currency or e Rupee which is symbolised as e₹ can completely change the way we look at money. We are one step closer to cashless India. The payments will be super quick and you can also keep tabs on how much you have paid and the amount received. The crimes will also become less as you will be carrying your money on your phone. So now you do not have to worry about dropping your note on the street. Now instant transfers can be done. You will be able to transfer money to the respective merchant within seconds. But you also have to note the fact that you will not get any interest on the money that stays in your e wallet.

Because it is not a bank account instead it is exactly like your money sitting in your physical wallet. So not interest will be gained. Also there are some drawbacks. Since it is digitalised using the app might need internet and we all know that there are many parts of our country that do not have access to internet. But considering this situation it is also possible or we can say the chances are high that CBDC central bank digital currency will not require internet connection. The CBDC Central bank digital currency absolutely has the potential to transform our economy and it is going to be the one of the best change. So we are curious to see how the pilot phase one trial goes and we are really hoping that it goes well so soon will be be closer to becoming ‘Cashless’.