Question

The retail e-Rupee operates through a two-tier model. In this model, which entity is responsible for distributing the e-Rupee to end users?

Q: Answer-The retail e-Rupee operates through a two-tier model. In this model, which entity is responsible for...

In the two-tier model for the retail e-Rupee Tier 1 the RBI issues the digital currency to participating commercial banks analogous to how physical currency notes are issued. Tier 2 the banks distribute the e-Rupee to their customers through purpose-built digital wallets on mobile applications. The RBI does not interface directly with the general public. This preserves existing banking intermediation while introducing CBDC capabilities. NPCI, UIDAI, and state governments are not in the distribution chain for the e-Rupee.

A The Reserve Bank of India distributes directly through the RBI website and mobile app

B Participating commercial banks distribute the e-Rupee to customers through digital wallets

C The National Payments Corporation of India (NPCI) acts as the sole distribution intermediary

D State Governments distribute the e-Rupee through Common Service Centres (CSCs)

E UIDAI distributes the e-Rupee directly to Aadhaar-linked accounts

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The retail e-Rupee operates through a two-tier model. In this model, which entity is responsible for distributing the e-Rupee to end users?

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