"E- Rupee: Tap and Transact" A Study With Reference To Bankers' Preparedness in Mangalore

Abstract

The demonetization of currency in the year 2016 by Modi government revolutionized the movement towards usage of digital payment methods in India though it was strenuous decision for country like India where 90% of transactions are in cash. People adopted digital mode of payment in a short span of time. It was facilitated by phenomenal increase in ownership of smart phones, user friendly UPI’s. It has also increased the popularity of crypto currencies like bit coin, Ethereum and ripple which have no regulatory body. As a result, the central bank has come up with the introduction of digital currency e-rupi. It is a form of currency that is available only in digital or electronic form. It is also called digital money, electronic money, electronic currency, or cyber cash. National electronic funds transfer (NEFT), immediate payment service (IMPS) and digital wallets are examples of digital rupees. The digital rupee or the e-rupee (e₹) is a central bank digital currency (CBDC) which is overseen by RBI. Like physical notes present in your wallet digital rupee is also a legal tender and you hold it electronically in a digital wallet. The first pilot phase for the retail e-rupi was rolled out on December 1^st 2022 in four cities- Mumbai, New Delhi, Bengaluru and Bhubaneswar. The pilot began with four banks including State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank while four other banks- Bank of Baroda, Union Bank of India, HDFC Bank and Kotak Mahindra Bank are joined subsequently. Since it is yet to be implemented in Mangalore, it is important to know the level of awareness among the bankers and how prepared they are for the implementation. It also throws light on the potential challenges that may need to be faced by the bankers after the implementation of e-rupi. For the purpose of study both primary as well as secondary data have been collected. The respondents were selected based on the convenience sampling method from the employees of different banks in Mangalore. The result revealed that many bankers are not aware of the practicality of e-rupi as it is yet to be implemented fully. Still, it is important to note this because they are the ones who need to create awareness among the general public. Technology seems a barrier in Mangalore city to take forward actions because of the cyber security challenges. Certain measures, moderate control, and proper training as well as a visual program related to e-rupee is lacking. If implemented properly, India has a great chance to lead the world and e-Rupi could act as a catalyst for innovation, promoting rivalry and payment efficiency. It should be available and made easy for all the sections of the society. Reaching the unreached and tapping the untapped will make a successive implementation of e-rupee.