The E-Rupee (Central Bank Digital Currency – Retail), launched by the Reserve Bank of India (RBI), is designed as a digital equivalent of cash. What is the interest rate offered on balances held in E-Rupee wallets?​

Correct option is E

The E-Rupee functions as digital legal tender, equivalent to physical cash. Just like cash in hand, it does not earn any interest. This design prevents diversion of deposits from banks to CBDC and maintains financial system stability.

Knowledge Booster:

• RBI launched two pilots: CBDC-R (Retail E-Rupee) and CBDC-W (Wholesale E-Rupee).

• The E-Rupee can be used for P2P and P2M transactions via digital wallets.

• Globally, most central banks have kept CBDCs non–interest-bearing to avoid disrupting traditional banking.