How is digital rupee different from UPI?

Asked 23-May-2022
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1 Answer


  • In place of money or cash, the Digital Rupee will be the fundamental payment channel for digital payments. 'Payment rails such as UPI, IMPS, and others move funds using the underlying currency/cash. In this situation, payment rails are intended to work in tandem with the digital rupee to provide a smooth payment transaction 'PwC India Partner and Payments Transformation Leader Mihir Gandhi
  • UPI payments are now made with the digital equivalents of current cash notes. This means that every rupee sent via UPI is backed by real money. 'The digital rupee will be legal tender in and of itself, and will not require physical currency to back it up,' stated Sumit Gwalani, Co-Founder of Neobank Fi.

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