Digital Rupee vs UPI: Unlike Digital Rupee, UPI is only used as an interface for transactions involving actual money. The Digital Rupee is only another type of money that is similar to fiat money. UPI and the digital Rupee are fundamentally separate ideas. With the introduction of the digital rupee, India may be hoping to eventually abandon UPI. The concept is likely to reduce the expense of managing and delivering cash money by depending on the digital rupee. The goal of digital currency is to eventually replace the need for physical money.
December 2022 Current Affairs Quiz
Digital Rupee vs UPI: About Digital Rupee
A digital version of paper money is what the term “digital rupee” or “digital currency” refers to. Cash money and the digital rupee have the same value. One digital rupee is equivalent to one rupee in currency, for instance. Simply put, this indicates that, unlike cryptocurrencies, the value of the digital rupee never changes.
Digital Rupee vs UPI: Buying and using Digital Rupee
To buy a Digital Rupee, users must go to the official app or website of one of the four certified banks. The precise procedure for purchasing digital rupee hasn’t been made explicit by the RBI, but it has stated that customers would be able to make purchases using QR codes displayed at merchant locations, and the money will be withdrawn from bank wallets.
Using Digital Rupee, one can shop and make purchases at neighbouring Kirana outlets. Both individuals and businesses are able to swap digital rupees.
Digital Rupee vs UPI: About UPI
UPI, in contrast to Digital rupee, merely serves as an interface for financial transactions involving actual money. While one cannot withdraw Digital Rupee from their bank account, it is merely another type of money similar to fiat money. The UPI interface, however, enables consumers to conduct online transactions using their bank account. Fiat money is essentially used for all transactions.
Difference between Digital Rupee and UPI
| Digital Rupee | UPI |
| A digital version of paper money is what the term “digital rupee” or “digital currency” refers to. One digital rupee is equivalent to one rupee in currency. Users must visit the official app or website of one of the four designated banks in order to purchase digital Rupee. The exchange of digital rupees can take place between individuals and businesses. | UPI, in contrast to digital rupee, merely serves as an interface for financial transactions involving actual money. The UPI interface enables consumers to conduct online transactions using their bank account. Instantaneous money transfers on mobile devices every day of the year, 24/7. Multiple bank accounts can be accessed using a single mobile application. |
