“A study on awareness, perception and

acceptance of Digital Rupee of RBI”

Dissertation submitted to Bangalore University on partial fulfillment of the

requirement for the award of the Degree of
MASTER OF BUSINESS ADMINISTRATION
BANGALORE UNIVERSITY

Submitted by
SANJANA.B.V
(P03CJ21M0111)
UNDER THE GUIDANCE OF
DR. SUMERA ALURU
ASSOCIATE PROFESSOR

DAYANAND SAGAR COLLEGE OF ARTS, SCIENCE AND COMMERCE

Shavige Malleshwara Hills ,K.S Layout, Bangalore -560078
2021-2023

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 DECLARATION BY THE STUDENT

I hereby declare that “A STUDY ON AWARENESS, PERCEPTION

AWARENESS OF DIGITAL RUPEE WITH REFERENCE TO RBI” is the
result of the project work carried out by me under the guidance of Dr.SUMERA
ALURU in partial fulfillment for the award of Master’s degree in Bangalore
Administration by Bangalore University.
I also declare that this project is the outcome of my own effort and that is has not
been submitted to any other university or institute for the award of any other
degree or Diploma or Certification.

Place: Bangalore Name:

SANJANA.B.V
Date: Register number :P03CJ21M0111

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 GUIDE CERTIFICATE

This is to certify that SANJANA.B.V Reg no:P03CJ21M0111 of third semester

of MBA has successfully completed project report titled “ A STUDY ON
AWARENESS, PERCEPRTION AND ACCEPTANCE OF DIGITAL
RUPEE OF RBI “.
During the academic year 2021-2023 in partial fulfillment of the requirement for
the award of Degree of Master of Business Administration of Bangalore
University .

Place: Bangalore Internal Guide

Date: Dr. SUMERA ALURU

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CERTIFICATE OF ORIGINALITY

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 ACKNOWLEDGEMENT

I have been fortunate enough to get good timely advice and support from a host of people to
whom I shall remain grateful.
I would hereby like to extend my gratitude to the following people without whose cooperation
and help at every stage, successful completion of the project would not have been possible.
I take opportunity to express my heartfelt thanks to, Director Dr. B.R.Venkatesh, Dayananda
Sagar College of Arts, Science and Commerce, Bangalore, for his support and cooperation to
undertake and complete this project work .
It gives me immense pleasure to record my thanks to my Guide, Dr.SUMERA ALURU
Dayananda Sagar College of Arts, Science and Commerce, Bangalore, for her valuable guidance
and untiring support and cooperation in completing the project work.
I finally, thank for the patience and cooperation of all faculty members, family members and
friends, without who the endeavor would not been possible.

SANJANA.B.V

ABSTRACT
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In recent years after demonetization in India , central banks i.e. RBI has rolled out a pilot scheme
for a digital rupee, which will have same value and legitimacy as a bank note or coin. RBI
released a concept note on India’s own digital currency i.e. e₹ (digital rupee). As per RBI ,it is
to “create awareness about central bank digital currency (CBDC) in general and planned features
of the digital rupee, in particular.”

Digital rupees are integral part of fintech revolution which will impact many areas including
payments and settlement system and services.

The history of money is fascinating and from early days of bartering of metal coins to paper
money.

e-rupee will make life easy by providing instant transfer of money ,no requirement of settlement
for banks or participants, no need to carry coins and currency notes for banks or regulator. To
reduce the cash circulation and fake currency and also to reduce the funding to terrorism. RBI
introduced “digital rupee”.

RECENT TRENDS:

The demonization of currency in year 2016, provides a way towards usage of digital payment
method in India.

RBI tied in at least 5 lenders including SBI, ICICI Bank , IDFC Bank and HDFC Bank etc. to
work on retail pilot project and also for wholesale segment.

GENERAL AWARENESS AND KNOWLEDGE ON DIGITAL RUPEE:

As the world around us becomes more hyper connected and ecosystem dependent, central
bank digital currency (CBDC) – a new digital form of money issued by central banks – may just
be the new infrastructure we need for ushering in more trust, resilience, and efficiency.

The Digital Rupee (e₹) or eINR or E-Rupee is a tokenized digital version of the Indian

Rupee, to be issued by the Reserve Bank of India (RBI) as a central bank digital
currency (CBDC). The Digital Rupee was proposed in January 2017 and will be launched in the
2022-23 financial year.

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 Table of contents
SL.NO DESCRIPTION PAGE NO.
Acknowledgement
Abstract

1 CHAPTER 1- INTRODUCTION
1.1 Introduction
1.2 The history of currency

2 CHAPTER 2 – COMPANY PROFILE AND

THEORITICAL BACKGROUND OF THE
STUDY
2.1 Company profile
2.2 Currency
2.3Types of currency
2.4 How currency facilitates payments
2.5 Distributed Ledger Technology
2.6 Digital Rupee-meaning, definition(history)
2.7 Advantages and disadvantages of digital rupees
2.8 How Digital Rupee works; how different from digital
money
2.9 Impact of Digital Rupee on –
Indian economy
Indian Business
Individuals
2.10 Types of Digital Rupee-
Digital Rupee- Retail
Digital Rupee - Wholesale

2.11 How to use Digital Rupee

2.12 Difference between Digital Rupee Vs UPI
2.13 Difference between Digital Rupee VS Cryptocurrency
2.14 How Digital Rupee is different from China’s digital rupee

3 CHAPTER 3 – LITERATURE REVIEW AND

RESEARCH DESIGN
3.1 Review of literature
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 3.2 Statement of the Problem
3.3 Need of study
3.4 Scope of study
3.5 Objectives of study
3.6 Research Methodology
4 CHAPTER 4- DATA ANALYSIS AND
INTERPRETATION
4.1 Primary data analysis- Digital Rupee awareness, perception
and acceptance(Data and field responses on digital rupee)

a. Gender awareness level on digital rupee

b. Age factor awareness response analysis

c. Qualification awareness level on digital rupee

d. Respondents perception on digital rupee efficient in India

e. Respondent’s preference to make use of digital payment apps

f. Respondent’s perception- efficient change in Indian economy

after issue of Digital Rupee

g. Analyzing the reasons for using digital payment apps by

respondent’s

4.2Analyzing demographic variable

4.3 Tools and technique to evaluate and hypothesis
Data analysis confirmation
5 CHAPTER 5- FINDINGS AND CONCLUSIONS
5.1 Findings
5.2 Suggestions
5.3 Conclusion
6 CHAPTER 6-REFERENCES AND ANNERXURES
6.1 Bibliography and reference
6.2 Annexures

List of table and charts

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9|Page
 Chapter -1
INTRODUCTION

1.1 Introduction

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The history of money is fascinating and from early days of bartering of metal coins to paper
money.

Payments system are changing is faster pace. Maintaining monetary and financial stability
provide access to safe and efficient payment i.e. transaction of money.

The demonization of currency in year 2016, provides a way towards usage of digital payment
method in India. People adopted digital mode of payment in a short period of time.

To reduce the cash circulation and fake currency and also to reduce the funding to terrorism. RBI
launched and introduced “Digital Rupee”.

RBI released a concept note on India’s own digital currency i.e. e₹ (Digital rupee). As per RBI,
it is to “create awareness about the Central Bank Digital Currency(CBDC) in general and
planned features of the digital rupee, in particular.”

A Central Bank Digital Currency (CBDC) is a legal tender issued by central bank in digital form.
The digital rupee is the form as a banknote or coin that we use daily, only in digital form.

RBI tied in at least 5 lenders including SBI,ICICI Bank, IDFC Bank and HDFC Bank to work on
retail pilot project and also for wholesale segment.

RBI’S CBDC is the same as a sovereign currency and is exchangeable one to one at par with fiat
currency, the regulator mentioned.

It appears as liability on the Central Bank’s balance sheet and easily can be converted into
commercial banks money and cash.

A CBDC is different from digital money that are available because CBDC would be liability of
the Reserve Bank not for commercial banks.

CBDC is aimed to complement current form of money and is to provide an additional payment
avenue to users, and not for replacing existing payment system.

And it is not different from bank notes, but being digital it is likely to be easier , faster and
cheaper.

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India is witnessing growth in digital transactions the volume and value of unified payments
interface(UPI). India’s digital rupee move based on transparent and efficient technology with
continuous access to payment system.

The attitude of countries regarding adoption of digital currencies is different irrespective of their
economic conditions.

Digital rupees are integral part of fintech revolution which will impact many areas including
payments and settlement system and services.

E-rupee will make life easy by providing instant transfer of money, no requirement of settlement
for banks or participants ,no need to carry coins and currency notes for banks or regulator .

Reserve bank has played the role of a catalysts towards achieving its public policy objective of
developing and promoting a safe secure of developing and promoting a
safe ,secure ,sound ,efficient and interoperable payment system.

RBI had taken several initiatives since the mid-eighties to bring in technology-based solutions to
banking system.

1.2 The History of Currency

Money is an intrinsic component of cultural heritage of a country mirroring its socio-economic

history India was the earliest issue of coinage in world . The history of the rupee traces back to
ancient Indian subcontinent.

The word “rupee” is derived from a Sanskrit word “rupya”,which means “wrought silver” ,and
maybe also something stamped with an image or a coin.

The Indian rupee was a silver-based currency during much of the 19 th century, which had severe
consequences on the standard value of the currency ,as stronger economies were on the gold
standard . During the British rule ,and the first decade of independence, the rupee was subdivided

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into 16 annas. Each anna was subdivided into 4 pices. So, one rupee was equal to 64 pice (paisa)
and 192 pies as 1 pice was equal to 3 pies in 1957.

For many years in the early and mid-20th century , the Indian rupee was the official currency in
several areas that were controlled by the British and governed from India; areas such East Africa,
Southern Arabia and the Persian Gulf.

Since its Independence in 1947,Indian rupee was adopted as currency in the nation. During this
period almost till mid 1960’s Indian rupee was also a legal tender in Trucial States, Oman,
Bahrain and Kuwait .

Dates Currency system

1850-1957 1 rupee= 16 annas = 64 pices

From 1 April 1957 1 rupee= 100 naya paisa

From 1 June 1964 till today 1 rupee = 100 paisa

Notes were issued by the Bank of Bengal can be categorized in the 3 series ,they are unifaced
series , commerce series and Britannia series.

The paper Currency Act,1861 gave the Government the monopoly of note issue throughout the
vast expanse of British India. British India also issues 3 series of notes , they are Victoria portrait
series , Underprint series and George V series .

Following the Independence of India, the Government of India brought out the new design Re.1
note in 1949. Initially, it was felt that the King’s portrait is replaced by a portrait of Mahatma
Gandhi. In 1953,Hindi was displayed prominently on the new notes. The economic crisis in the
late 1960s led to a reduction in the size of notes in 1967. High denomination notes, like
Rs.10,000 notes were demonetized in 1978.

The first “Mahatma Gandhi Series” was introduce in 1996. Prominent new features included a
changed watermark, windowed security thread , latent image and intaglio features for the
visually handicapped.

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 Indian rupee ₹
Subunits Pie, Anna and paisa
Coins-
Present ₹1, ₹2, ₹5, ₹10 ,₹20
former 1 paisa, 2 paisa, 3 paisa, 5 paisa , 10 paisa , 20 paisa , 25 paisa
Banknotes-
Series Lion capital series, Mahatma Gandhi series, Mahatma Gandhi new series ,
Digital rupee
Denominations ₹1, ₹2, ₹5 , ₹10 , ₹20 , ₹50 , ₹100 , ₹200 , ₹500 , ₹2000
Symbols Indian rupee sign
Mint India Government Mint (Hyderabad Mint , Kolkata Mint , Noida Mint

Management of currency is one of the core central Banking functions of the reserve bank for
which it desires the necessary statutory powers from section 22 of the RBI act 1934.

Government of India , reserve bank is responsible for the design, production and overall
management of the nation’s currency .

In modern economies, currency is a form of money that is issued exclusively by sovereign and
legal tender.

India has made impressive progress towards digital payments. The state-of -the-art payment
system that are affordable, accessible ,convenient , efficient , safe ,secure and available
24*7*365 days a year are a matter of pride for nation.

With development for economy and evolution of payment system ,the form and functions of
money has changed over time ,and it will continue to influence the future course of currency.

The changing feature of money are defining new financial landscape of the economy.

Further digitalization of money is the next milestone.

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 Chapter -2
COMPANY PROFILE AND
THEORETICAL BACKGROUND OF THE
STUDY

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2 - Company profile
2.1 RESERVE BANK OF INDIA
RBI was setup on the basis of Reserve Bank India Act, 1934 provides statutory basis of the
functioning of Bank, which commenced operations on April 1,1935.

The bank was constituted to

 Regulate the issue of Banknotes

 Maintain reserves with a view to securing monetary stability and
 To operate credit and currency system of the country to its advantages.

Offices of the banking department were established in Calcutta, Bombay, Madras , Delhi and
Rangoon.

The bank began its operations by the controller of currency and the management of Government
accounts and public debt.

The bank was also instrumental in institutional development and helped to set up institutions like
the deposit insurance and credit guarantee corporation of India , the Unit Trust of India , the
Industrial development Bank of India , the National Bank of Agriculture and rural development
to build financial infrastructure of the country.

With liberalization, the bank’s focuses to core central banking functions like monetary policy ,
bank supervision and regulation and overseeing payment system and developing financial
markets.

RBI established the “National Payments Corporation of India” to regulate the payment and
settlement systems in India.

In the wake of the second wave of COVID-19 pandemic, which induced the efforts of RBI
remained focused on ensuring adequate supply of clean banknotes in economy while accelerating
the pace of disposal of solid notes.

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Simultaneously, the Reserve bank also attempt to gather meaningful insights about the pattern of
usage of cash by the public given the risk in digital payments in recent days.

The overall direction of the RBI lies with the 21-member central board of directors, composed of
the Governor; 4 Deputy Governor ; 2 Finance Ministry representatives; 10 Government
nominated Directors; and 4 Directors who represents local boards. Each of this local board
consist of 5 members who represent regional interest and interest of co-operative and indigenous
banks.

It is member bank of Asian Clearing Union. The bank is also active in promoting financial
inclusion policy and is a leading member of the Alliance for financial inclusion. The bank is
often referred by name “Mint Street”.

Functions of RBI-

a. Financial supervision
b. The primary regulator and supervisor of the financial system
c. The regulator and supervisor of payment and settlement system.
d. Banker and debt manager to government
e. Managing foreign exchange
f. Issue of currency
g. Banker’s Bank
h. Regulator of the Banking system
i. Detection of the fake currency
j. Custodian to foreign exchange
k. CSD for G-securities

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Policy rates and Reserve ratio-

Rates as of 5 May 2022[112]

Policy rates

Policy repo rate 6.25%

Reverse repo rate 3.35%

Marginal standing facility rate 4.65%

Bank rate 4.65%

Reserve ratios

Cash reserve ratio (CRR) 4.0%

Statutory liquidity ratio (SLR) 18.00%

Lending and deposit rates[113]

Base rate 8.95%–9.40%

Marginal Cost of funds-based overnight Lending Rate

7.80%–8.30%
(MCLR)

Savings deposit rate 3.25%–3.50%

Term deposit rate for > 1 year 6.25%–7.00%

Source: Wikipedia

There is other facility by RBI –

Bank rate: Bank rate is defined in section 49 of RBI act of 1934 as standard rate at which RBI
is prepared to buy or rediscount bills of exchange or other commercial paper eligible for
purchase.

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Liquidity adjustment facility (LAF): LAF is a facility for commercial banks to avail of
liquidity in case of need excess funds with RBI on an overnight basis against collateral of
government securities.

Open market operations(OMO): OMO is a activity and selling of government securities

in open market to control the supply of money in banking system.

Payment system Initiatives-

The Reserve bank had taken many steps towards initiating and updating secure and sustainable
methods of payment system in India to meet public requirements.

Currently, payment methods in India consist of paper-based instruments, electronic instruments

and other instruments such as pre-paid system(e-wallets) , mobile internet banking, ATM based
transactions , point of sales terminals and online transactions.

1. Paper based payments:- use of paper-based instruments such as cheques and

demand drafts accounts for nearly 60% of the volume of total non-cash transaction in
India. These forms of payments have been steadily decreasing over a period of time due
to electronic modes of payments gaining popularity due to comparative convenience ,
safety and overall efficiency.
Magnetic-Ink Character Recognition(MICR) technology was introduced by RBI in the
paper-based payment method for speeding up and bringing in efficiency in processing of
cheques.
Also, introduced cheque truncation(CTS) system restricts the physical movement of
cheques and utilizes images for enhanced secure payments processing.
2. Electronic payments:-
a. Electronic clearing service(ECS)- this enables customer bank accounts to be
credited with a specified value and payment on a set date. This makes EMI’S or
another monthly bills transaction free.
b. National electronic clearing services(NECS)- these facilities multiple
advantages to beneficiary account with destination branches against a single debit of
account of sponsor bank.

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 c. Electronic fund transfer(EFT)- this retail funds transfer system was a enable
an account holder of bank to electronically transfer funds to another account holder
with any other intermediate or participating bank.
d. National electronic funds transfer(NEFT) – a secure system to facilitate
real-time funds transfer between individuals and corporates.

e. Real time gross settlement(RTGS) – a fund transfer in which transfer of

money takes place from one bank to another on a real-time basis without delaying or
netting with any other transaction.

RBI has made changes to prepaid payments instruments(PPI) also known as e-wallets. These
changes include KYC-Know your customer compliance. KYC is process of collecting user
details by service provider and verifying the same with respective government bodies.

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2.2 Currency
Currency is a medium of exchange for goods and services. In short, its money ,in form of paper
and coins, usually issued by a government and generally accepted as its face value as a method
of payment.

Currency is generally accepted form of payment usually issued by a government and circulated
within its jurisdiction.

The value of any currency fluctuates constantly in relation to other currencies.

Currency is a tangible form of money, which is an intangible system of value.

The acceptance of a piece of paper in return for something of real value took a long time to catch
on. Modern currencies are issued on paper in various denominations, with fractional issues in
form of coins.

Money Vs Currency-

The term money and currency are often thought to mean the same thing. However, while they
have different meanings.

Money is a broader term that refers to an intangible system of value that makes the exchange of
goods and services possible, now and in future. Currency is simply one, tangible form of money.

Money also referred to as unit of account. That means it can be used to account for changes in
the value of items over time.

Businesses use money as a unit of account when they prepare a budget or give assets a value.
Profits and losses are established and relied upon using money as a unit of account.

Money also has certain properties that allow for smooth exchange of goods:

 It is fungible or exchangeable, so that it doesn’t need to be revalued for every transaction.

 It is durable so that it lasts for many exchanges over time.
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  It is convenient to carry and divide.
 It is recognizable so that people can trust it and confidently complete their exchanges of
goods and services.
 The supply of money should be stable so that its value is reliable.

 Security features of the currency notes-

1. Security Thread- The security thread appears to the left of the Mahatma's portrait.
Security thread has a plain, non-readable fully embedded security thread. But since
October 2000, the Rs.2000 notes contain a readable, windowed security thread
alternately visible on the obverse with the inscriptions ‘Bharat’ (in Hindi), ‘2000’ and
‘RBI’.

2. Watermark- The Mahatma Gandhi Series of banknotes contain the Mahatma Gandhi
watermark with a light and shade effect and multi-directional lines in the watermark
window.

3. Micro-Lettering- This feature appears between the vertical band and Mahatma
Gandhi portrait. It contains the word ‘RBI’ in Rs.5 and Rs.10. The notes of Rs.20 and
above also contain the denominational value of the notes in micro-letters. This feature
can be seen well with the help of a magnifying glass.

4. Latent- Image- On the obverse side of Rs.2000, Rs.500, Rs.100, Rs.50 and Rs.20
notes, a vertical band on the right side of the Mahatma Gandhi’s portrait contains a
latent image showing the respective denominational value in numeral. The latent image
is visible only when the note is held horizontally at eye level.

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 Source:jagranjosh

5. Identification mark- To help the visually impaired a special feature in intaglio has
been introduced on the left of the watermark window on all notes.
This feature is in different shapes for various denominations i.e. Rs. 20 have in Vertical
Rectangle, Rs.50 in Square, Rs.100 in Triangle and Rs. 500 in Circle.

6. Intaglio Printing- This feature is added in the bank notes for the convenience of the
blind peoples. The Ashoka Pillar Emblem on the left, portrait of Mahatma Gandhi, the
Reserve Bank seal, guarantee and promise clause, RBI Governor’s signature are printed
in intaglio.

7. Optically Variable Ink or Color-Changing Ink- This is a new security feature

incorporated in the Rs.1000 and Rs.500 notes since November 2000.
The numeral digit 2000 and 500 on the obverse of Rs.2000 and Rs.500 notes
respectively is printed in optically variable ink viz., a color-changing ink.
The color of the numeral 2000/500 appears green when the note is held flat but would
change to blue when the note is held at an angle.

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 8. See through Register- The small floral design printed both on the front and back of
the note in the middle of the vertical band next to the Watermark has an accurate back to
back registration.

9. Fluorescence- Number panels of the notes are printed in fluorescent ink. The notes
also have optical fibred. Both can be seen when the notes are in front of ultra-violet
lamp.

2.3 Types of currencies

Currency is a type of money that is used in different countries as a different form

of money, below are the list of some countries and their currencies.
COUNTRY CURRENCY

INDIA INDIAN RUPEE

UNITED STATES UNITED STATES DOLLAR
UNITED KINGDOM BRITISH POUND
UKARINE UKRAINIAN HRYVNIA
SRI LANKA SRI LANKAN RUPEE
RUSSIA RUSSIAN RUBLE
AUSTRIA EURO
JAPAN JAPANESE YEN
DUBAI UNITED ARAB EMIRATES DIRHAN
CHINA YUAN

Types of currencies used/use in India-

The Indian currency is called “Indian Rupee”(INR) and the coins are called paisa. One rupee
consists of 100 paisa.
The symbol of Indian rupee is ‘₹’.

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Currency basics:
Coins: coins in India are presently being issued in denominations of one rupee(₹1), two
rupees(₹2), five rupees(₹5) and ten rupees(₹10). Coins in the denominations of 1 paisa, 2 paisa,
3 paisa, 5 paisa, 10 paisa, 20 paisa and 25 paisa have been withdrawn from circulation with
effect from January 30,2011 and are therefore no more legal tender.

Currencies: banknotes in India are currently being issued in denominations of ₹10, ₹20, ₹50,
₹100, ₹200 , ₹500 and ₹2000. These notes are called banknotes as they as issued by the RBI.

2.4 How currency facilitates payments

Payment and settlement system in India are used for financial transactions. They are subject to
the payment and settlement system act (PSS Act) 2007 enacted in December 2007 and
administered by the reserve bank of India and the payments and settlement system regulatory and
supervisory board. There are several payment and settlement system in India which include both
gross and net payment system.

For gross settlement in India, there is real time gross settlement system (RTGS) of the same
name, Electronic Payment Services(ECS Credit), Electronic Payment Service (ECS Debit),
credit and debit cards, National Money Transfer and Electronic payment System, Central Bank
of India, Instant Payment Services and the Unified Payment Interface(UPI) aim to promote
alternative payment methods that ensures the security and efficiency of Payment systems and
simplify the entire process for banks.

The freedom and repayment of money related and other monetary exchanges in India, paper-
based installments have been quickly supplanted by electronic installments.

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Under the Payment and Settlements Act 2007, the Reserve Bank of India is responsible for
overseeing the country’s banking and payment system and allows any company to operate
payment system in India. Payment companies must comply with RBI requirements in a timely
manner to ensure that the technology used to operate the system is secure and follows approves
processes.

The decision of RBI to allow rupiah settlements for international trade will help India to boosts
its exports and facilitate trade with sanctioned countries. Now we can pay for Russian not in
dollars, but in rupees. India has increased oil imports to capitalize on falling oil prices after the
US, Europe, Australia, japan imposed economic sanctions on Russia. Cheaper Russian oil could
help India, where inflation has topped the Central bank’s targets, as oil prices surged to nearly
$130 a barrel as a deal appears to have been struck to allow trade between rupee and the ruble.

The RBI mechanism is designed to allow importers and exporters to bypass rules that prohibit
the use of global currencies such as the US dollar in transactions with certain countries.

Presently, 60% of exchange installments by Indian firms are designated in the US dollar, while
5-10% in rupee and the equilibrium in different monetary forms. The rupee has not debilitated
against each money. Truth be told, it has reinforced against the monetary standards of most
significant nations. It appears as though it is pointed toward checking that money instability.

Rupee billing reduces currency risk as the dollar becomes more volatile and some currencies hit
new lows against the dollar.

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2.5 Distributed Ledger Technology (DLT)-

Distributed Ledger Technology(DLT) is a technical infrastructure and protocol that enables

simultaneous access, validation and updating of records in networked databases. DLT is the
technology behind the blockchain. After it was revealed that Bitcoin was made from it, it
received more attention from media and the public. Today DLT technology is a buzzword given
its potential applications in industry, business and government.

Distributed ledger technology allows information to be stored securely and accurately using
cryptography. Data can be accessed using “keys” and cryptographic signatures. Once the
information stored, it can be immutable database. A network of rules written in the database code
governs the registry.

Distributed ledgers are less vulnerable to cybercriminals because they are decentralized, private
and encrypted, since all copies stored on the network must be attacked simultaneously for a
successful attack. In addition, sharing and updating records between partners makes the whole
process faster, more efficient and cheaper.

Central Bank Digital Currencies requires the use of distributed ledger technology. Global
scalability and interoperability for expansion and growth, security. The ability to allow
customers to securely participate in the network Real-time transactions processing.

Current transactions, such as credit card payments, can take several days. Blockchain enabled
CBDC’s take seconds. No single point of failure. In many instances using DLT, there is very
little chances of data loss. Real time transparency for full account visibility and account

status DLT was designed for a world that has departments and systems that are not necessarily
fully integrated.

DLT also ensures the speed and transparency of transactions.

CBDCs, a widely proposed application of blockchain and DLT, have generated significant
interest in the central banking community due to their potential to address long-standing issues

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such as financial inclusion, payment efficiency, operational sustainability and cyber payments
systems.

In many of these CBDC pilot projects, Central Banks issue digital tokens on a distributed ledger
that are exchangeable and represents the Central Bank’s National Foreign Exchange Reserves
held in segregated Central Bank accounts.

Central Banks have used DLT for Digital Currency issuing ,Central Bank Payment compliance,
Monopoly Records management, identify management Audit trail management Personal records
management Taxation.

The benefits of DLT –

 It provides a high level of transparency

 Fast transactions
 Extensive process automation.

In addition, by using a decentralized public record of transactions, DLT greatly improves

security, especially in areas such as payments and credit card transactions.

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2.6 Digital Rupee

The Reserve Bank of India has introduced a Central Bank Digital Currency (CBDC) to be
classified as a digital form of fiat currency. Widely known as the digital rupee, the rupee is
exchanged at the same exchange rate as traditional currencies and is considered acceptable for
payments and safe keeping of value.

Digital rupee aims to create additional uses of money and are not too different from currently
issued fiat currencies. Only digital rupees are expected to be produced digitally, which will
enhance the usability.

The digital rupee is an RBI approved version of a cryptocurrency that has been repeatedly
rejected by Central Banks for being a serious threat to the stability of the country’s financial
system. CDBC, the national currency in electronic form, is advertised as more secure than
private cryptocurrencies.

Digital currency i.e. digital rupee is essentially a currency in the form of digital data on a
technological platform on a mobile or other device, replacing traditional fiat money. The Reserve
Bank of India has launched the Central Bank Digital Currencies CBDC-W and CBDC-R as trials
for the Indian market. CBDC-W and CBDC-R represents Wholesale and retail trade respectively.

The digital rupee proposed by RBI will be generated by a sophisticated payment system that is
accessible, convenient, efficient and secure and aims to further strengthen the digital economy.
However, it should be noted that concept launching a digital currency is only intended to
complement, not replace, existing forms of financial transactions. This gives users an additional
payment method using their existing payment system. The digital rupee(E₹) is used to issue a
virtual currency for government securities transactions.

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2.7 Advantages and Disadvantages of Digital Rupee

Advantages of Digital Rupee:-

a) Faster mode of payments- Digital Currencies can process payments much faster
than existing means such as automated clearing houses or wire transfers, which take days
for financial institutions to verify transactions.

b) Cheaper global transfer- Sometimes global transactions can be very expensive.

Individuals charge high fees for transferring funds from one country to another,
especially when it comes to currency conversion. Digital assets can change this market by
making transactions cheaper and faster.

c) 24/7 Availability – operations with digital currencies are carried out at the same rate.
24 hours a day, 7 days a week. On the other hand, regular money transfers often take
longer on weekends or after business hours because banks are closed and transactions
cannot be confirmed.

d) Monetary and Fiscal Policy implementation – under the current monetary

system, the Fed works with various intermediaries (banks and financial institutions) to
circulate money in the economy. CBDC bypasses this mechanism and allows
Government agencies to pay citizens directly. It also simplifies production and
distribution methods by eliminating the need to physically manufacture and transport
banknotes from one location to another.

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Disadvantages of Digital Rupee:-

a) Issues of cybersecurity – Digital currencies make people constantly worry about

cyber security and face many threats due to less secure ways to store money. Cyber-
attacks are likely to increase, and virtual thefts could threaten digital currency users.

b) Storage and Infrastructure use – while don’t need a physical wallet, digital
currencies have their own storage and processing requirements.

c) Volatile value – Digital Currencies used for trading can experience rapid price
fluctuations. For example, the decentralized nature of cryptocurrencies has led to an
abundance of thin-cap digital currencies whose prices tend to fluctuate rapidly at the
whim of investors. Other digital currencies initially followed the same path.

2.8 How Digital Rupee works; how different from digital money

CBDC is based on blockchain technology. Just like checking the bank balance can check digital
wallet. The e-rupee will become an electronic version of cash available to entire private sector,
non-financial consumers and businesses. This version of digital currency is mainly used for retail
transactions. Since e-rupee are under the direct responsibility of central banks, they can provide
access to secure funds for payments and settlements.

Digital rupees are issued at the same nominal value as the banknotes and coins used. RBI will
also distribute digital currencies through banks and allows users to transact with digital tokens
through linked digital wallets provided by various participating banks.

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Users will be able to make consumer-to-consumers(C2C) and consumers-to-business(C2B)
transactions with the future digital currency. QR codes displayed in retail stores can also be used
for business payments.

The Reserve Bank of India(RBI), a digital currency central bank(CBDC) project, has agreement
with at least five lenders including ICICI Bank, State Bank of India, IDFC First Bank and HDFC
Bank.

Unlike, cryptocurrency, which is not sovereign and is decentralized along with its own
denominations, the digital rupee is just a virtual counterpart of paper money issued by the RBI. It
has same features as physical money: trust, safety and settlement finality.

2.9 Impact of Digital Rupee

Impact of Digital Rupee on Indian Economy-

Cryptocurrencies in India have always been very tightly regulated, although not completely
banned. The RBI has always strongly opposed the use of “private virtual currencies” such as
Bitcoin or Ethereum.

The reason is simple, cryptocurrency is not regulated. The RBI leaves room for the informal
economy and illegal transactions in the secondary market because it does not control who sends
where and how much bitcoins transactions.

However, cryptocurrencies have undeniable advantages over fiat currencies. RBI is an

advantage, especially in today’s economy where digital payments are becoming more and more
popular.

The introduction of digital currencies into the economy allows to use all the advantages of
cryptocurrencies, while maintaining the security system of regulated fiat currencies. RBI wants
to make digital rupees as convenient as possible. It is intended to supplement, not replace,
existing physical money.

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The point is that advanced money would, ideally, diminish reliance on actual money. The
economy all in all would incline towards advanced installments and money- bringing about
diminished expenses of printing, stockpiling and transportation of actual money.

Utilizing advanced money likewise requires monetary and innovative information. While getting
better with innovation-computerized installments rose 55% over the most recent 5 years.

Impact of Digital Rupee on Indian businesses-

e₹ is at present in its pilot stage. 9 Indian banks have been decided to take part in this pilot
project. The purpose is to utilize e₹ in setting between bank exchanges.

The retail fragment of the e₹ is set and this retail portion will hold any importance with
organizations. The retail e₹ will carry out in select areas to choose traders and clients. Since it is
as yet a pilot.

The overwhelming majority deals happen on the web. India saw 20.57 web-based exchanges in
only the second quarter of this current year(April-June 2023). This development drove
installments goliath visa to see potential in the B2B space by investing long haul organizations
with fintech in India.

There are many reasons why companies prefer to process transactions digitally over cash. Cash
transactions risks in business include:

 Torn or damaged cash

 Theft of money
 Exposure to accounting errors
 Exposure to fraud and money laundering

Production of digital rupees, since digital currencies exist on the Internet, they cannot be hacked
or counterfeited. Cryptocurrency is the most secure payment method in the world. Hacking
blockchain networks requires quantum computers, and RBI also protects against them.

Even digital currency is stolen , the hack can be traced and identified. Since money often moves
from one side to the other, tracking must be done manually. Even if company uses digital

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accounting software, records must keep manually. Manual errors can cause serious financial
problems for a company.

Impact of Digital rupee on Individuals-

The Reserve Bank of India (RBI) wants the digital rupee to be seamlessly integrated into the
existing financial ecosystem, so the impact on individual users will be minimal.

The biggest benefit for individual consumers is the ability to pay for the goods and services they
purchase in other ways. Like UPI, OIL or online banking, the digital rupee will be another cog in
the payment system.

As mentioned earlier, the distribution of digital rupees is likely to be done through digital
wallets. People can claim a portion of their salary in digital rupees or ask to convert physical
currency to digital. The mechanism is still unknown, since the entire project is only in the pilot
stage.

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2.10 Types of Digital Rupee

RBI has introduced Digital Rupee in two forms i.e. for wholesale (e₹-W) for financial
institutions for interbank payments and for retail (e₹-R) for consumers and business transactions.
The launch of Digital Rupee aims to eliminate the cost of print security incurred by the public,
corporations, banks and RBI in physical currency.

Digital rupee for retail-

A pilot project in the retail sector, known as Digital Rupee Retail (e₹-R) was launched on
December 1,2022 as a part of a Closed User Group (CLU) of participating customers and
retailers.

Eight banks that will gradually participating in the retail pilot project. The first stage includes
four banks: State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank. In addition, four
banks will participate in retail project: Bank of Baroda, Union Bank of India, HDFC Bank and
Kotak Mahindra Bank.

e₹-R is a form of legal tender digital token. It was issued ate the same face value as banknotes
and coins. Distribution is carried out through financial intermediaries. i.e. banks users will
receive.

According to RBI, users will be able to transact with e₹-R through digital wallets provided by
participating banks and stored on mobile phones and devices.

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Transactions can be person to person (P2P) and person to merchant(P2M). the seller’s payments
can be made using the QR code displayed at the seller’s location.

e₹-R offers the characteristics of physical money, such as trust, security and ultimate settlement.
Like cash, it is interest-free and can be converted into other forms of money, such as bank
deposits.

Source: Wikipedia

According to the concept note, the digital retail rupee will be distributed on a two-tier model.
The central bank of India issues and exchanges electronic certificates and distribution and
payment services are delegated to banks. This model is similar to existing systems for managing
physical currencies, in which banks perform activities such as distributing banknotes to public,
maintaining accounts, complying with know your customer(KYC) rules, and combating money
laundering and terrorist financing.

The initial trail will allow customers and merchants to use digital rupees (e₹-R) or retail e-rupee
in four cities: Mumbai, New Delhi, Bangalore and Bhubaneswar.

According to the Central Bank, the pilot project will test the sustainability of the entire process
of creating, distributing and selling the rupiah digital currency in real time.

Retail digital rupee (e₹-R) offer the characteristics of physical money such as trust, security and
ultimate settlement. Like money, it is interest-free and can be converted into other forms of
money, such as bank deposits.

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Digital Rupee for wholesale-

The first pilot in the Digital rupee, Wholesale segment(e₹-W) was commenced on November 1,
2022. A use case for this pilot project is to allow transactions in the secondary market with
national securities. E-commerce is used to improve the efficiency of the interbank market. There
is no infrastructure or settlement that would guarantee settlement if settled with Central Bank
funds. Transaction costs are reduced because collateral is not required to mitigate risk.

The utilization case for this pilot is settlement of optional market exchanges in government
protections. And also, utilization of e-W is supposed to make the between bank market more
productive rupee.

During the pilot stage, the National Bank will give the CBDC account at customary stretches and
on request, the securities will get comfortable the SGL account with day end and pre-exchange
checks to guarantee start to finish operationalization.

Source: Wikipedia

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The controller additionally expressed repayment in National Bank cash would diminish
exchange costs by pre-empting the requirement for repayment ensure framework or for security
to moderate repayment chances.

“Proceeding, other discount exchanges, and cross-line installments will be the focal point of
future pilots, in light of the learnings from this pilot.”

2.11 How to use Digital Rupee

A Closed User Group (CUG) comprises of taking part vendors and clients. The e-pilot covers
chosen areas in CUG.

The e-rupee will be given in similar categories, trailed by paper money or coins. It is a
computerized badge of the overarching cash that will be dispersed through banks as a mediator.

Bank will offer a computerized wallet that can use on cell phones or workstations for online
exchanges of e-rupee.

We can choose both one individual to the other (P2P) and individual to-traders(P2M) exchanges
utilizing QR codes showed at shopping centers or shops. However advanced, the e₹-R
accompanies all elements of actual money like wellbeing, repayment conclusion, trust and so
forth.

We can change over the computerized rupee into different types of cash like bank stores, yet it
won’t acquire any revenue. The e-rupee pilot will direct a continuous evaluation of the retail
utilization of computerized rupees, conveyance and the security of complete creation. Besides, as
per this appraisal, the RBI will assess various purpose and parts of the advanced token.

As on account of money, it won’t procure any revenue and can be switched over completely to
different types of cash, similar to stores with banks.

The pilot project will survey the security of the total creation, appropriation and retail utilization
of advanced rupees continuously. In light of the illustrations gained from this pilot, different
perspectives and utilization of the e-rupee token and design will be assessed in additional pilots.

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 And also, it is possible for customers to transfer Digital Rupee to friends and family members.
So, users can also able to store money in Paytm wallet and it can be used for transactions when
required.

Utilizing CBDCs has benefits over other installment techniques, remembering a decrease for
functional expenses related with actual money the executives, advancing monetary
considerations, bringing strength, productivity and development to the installment’s framework,
improving repayment effectiveness, cultivating advancement in cross-line installments space.

2.12 Difference between Digital Rupee Vs UPI

Overall, India’s CBDC or the Advanced Rupee can be utilized in basically the same manner to
how one would utilize the actual money and has indistinguishable elements to paper money.

As RBI opens up India’s CBDC or Computerized Rupee for a more extensive use case, people
and organizations can begin executing with it and even store them in banks.

Since all installments utilizing e-rupee occur over the advanced stage, one could consider how it
contrasts from India’s native installment framework, UPI (Unified Payments Interface). They are
distinctly not the same as one another as UPI is an installment framework while the e-rupee is a
computerized money.

e-Rupee UPI

e-Rupee or Digital Rupee was created by the UPI was created by the NPCI
RBI

It is a currency issued by the RBI in digital UPI is a platform that enables digital payments
form for millions of Indians

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Payments made and accepted using e-Rupee Since UPI payments are made from a handle, all
are anonymous just like cash UPI transactions can be traced by individuals as
well as by the authorities

One doesn’t need to have a bank account to At least one bank account is mandatory to make
use Digital Rupee for payments and accept digital payments using UPI

Payments using Digital Rupee get deducted An individual’s or merchant’s bank account gets
or added to the total Digital Rupee one has debited or credited when one does a UPI
bought transaction

Source: Paytm Business

2.13 Difference between Digital Rupee Vs Cryptocurrency

Digital rupee and cryptocurrency are not comparable.

While both computerized rupee and cryptographic forms of money are made on blockchain
innovation, they are different regarding their instability and worth. Digital rupee are profoundly
unstable and are generally utilized for speculation, instead of for everyday exchanges.

e-rupee Cryptocurrency
Digital rupee is a centralized form of money Cryptocurrency is a decentralized form of
issued and regulated by RBI. money with no intermediaries in the
transaction process.

The Digital Rupee uses a private While, cryptos operate on a public

blockchain. blockchain in a decentralized
infrastructure.

Users makes payments using Digital Rupee. Cryptos remain anonymous.

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 Digital rupee is used for payments and other Cryptocurrencies are categorically both
monetary transactions. assets and currencies.

The Digital Rupee responds to inflationary However, crypto is a currency that acts as a
pressure. hedge against inflation.

Scalability of Digital Rupee is efficient as Scalability of cryptocurrencies is not

they operate on permissioned networks efficient.
similar databases.

Digital rupee and cryptocurrencies cannot be directly compared as they serve different purposes.
The digital rupee is ahead of India in the direction of the digital revolution. Digital payment
methods has many attractive benefits.

2.14 How India’s Digital Rupee is different from China’s digital rupee

At present, China is the main created country utilizing CBDC for an enormous scope and has
pilot projects running effectively in a few urban communities. Moreover, China’s driving
informing application and installments stage WeChat has likewise sent off a component that
permits clients to choose e-CNY as an installment choice on the stage.

While China has been exploring different avenues regarding CBDC starting around 2020. China
picked a cross breed framework for its CBDC e-CNY- a disseminated record for the compromise
interaction by the day’s end, and a focal record to record retail exchanges. The RBI as well, is
thinking about making an e-rupee half breed foundation stage. As per RBI, a few levels of the
CBDC tech stack could be created on brought together frameworks while staying on scattered
networks.

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 Source: internet

The cross-breed framework, in any case, features the public authority’s battle to choose an
optimal stage for CBDC, and it’s achievable that the two stage run administrations may
ultimately go with permissioned Distributed Ledger Technology (DLT). It is agreement of digital
transactions that are geographically dispersed among numerous sites, states, or organizations.

While laying out e-CNY, China made a comparable promise, expressing that will offer
“controllable secrecy” notwithstanding cash-like credits similar to those declared by the RBI.
Nonetheless, there is now a framework set up at individual’s Bank of China for huge information
investigation, risk checking and early admonition for the e-CNY is widely utilized all through
the country, it will can create a tremendous measure of information that monetary controllers
can take advantage of.

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 CHAPTER-3

LITERATURE REVIEW AND RESEARCH

DESIGN

3.1 Review of literature

1) Central Bank Digital Currencies: motives, economic implications and the research
frontier- Raphael Auer, Jon Frost, Tara Rice and research analysts

“In just a few years, central banks have rapidly ramped up their research and
development effort on central bank digital currencies (CBDCs). A growing body of
economic research informs these activities, often focusing on the “reserves for all” aspect
of CBDCs for retail use. However, CBDCs should be considered in the full context of the
digital economy and the centrality of data, which raises concerns around competition,
payment system integrity and privacy. If properly designed, they present an opportunity
to improve payments with a technologically advanced representation of central bank

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 money, one which preserves the core features of finality, liquidity and integrity that only
the central bank can provide. They could form the backbone of a highly efficient new
digital payment system by enabling broad access, and they may also help to provide
strong data governance and privacy standards.”

2) Proceeding with caution-a survey on Central Bank Digital Currency- Christian

Barontini and Henry Holden

“Payments are changing at an accelerating pace. Users expect faster, easier payments
anywhere and at any time, mirroring the digitalization and convenience of other aspects
of life (Bech et al (2017)). And, although paper-based payments like cheques and cash
still play important roles, new technologies and market entrants are challenging the
traditional bank-based payment systems (Jakobsen (2018)). In addition to changes in how
payments are made, even the type of money used could be changing. Across the world,
central banks are reportedly thinking about how new central bank digital currencies
(CBDCs) could replace traditional money (CPMIMC (2018)). To meet the payment
needs of the future, physical cash is unlikely to be the main answer. Yet, most people will
have to wait to use a CBDC. However, central banks are working hard to make sure the
wait is worth it.”

3) Digital currency and its implications for India-CMA (Dr.)Manpreet Kaur

“Digital currencies are integral part of fintech revolution which will impact many areas
including payment & settlement systems and services. Though this concept of digital
currency is less persistent now, it will emerge and disrupt the existing processes and
systems (how). Since inception, India’s stance on crypto currencies hasn’t been
encouraging. This was evident from RBI directive to halt dealings in cryptocurrencies
leading to fall of ZEBpay, India’s largest crypto exchange, by disabling deposit and
withdrawal in Indian rupees. Also, the report of the committee set up for determining the
feasibility of digital currency is still awaited. Though RBI is apprehensive about crypto but

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 it has no doubt in the utilization of distributed ledger technology in payment and settlement
solutions and the power of Machine learning and Artificial intelligence. Currently, RBI
shelved its plan to develop digital currency due to lack of understanding and preparedness
in dealing with it. DIGITAL CURRENCY like India, digital currencies can be introduced
initially for retail transactions with in accessible security features and can be used later for
investment transactions. Central bank can examine the viability of using digital currency in
combination with existing systems or providers. It can be said in conclusion that the block
chain will rule the economies all over the world in years to come and its adoption is
necessitated either by compulsion or choice.”

4) Central Bank Digital Currency in India: the case for a Digital rupee- Peterson K. Ozili

“ Indian people who were interested in ‘cryptocurrency’ information were also interested in
central bank digital currency’ information. The study also showed that the introduction of
CBDC has potential benefits such as reduced dependency on cash, higher seigniorage due
to lower transaction costs and reduced settlement risk. However, CBDC has associated
risks that need to be carefully evaluated against the potential benefits. The India CBDC will
be a powerful tool in the RBI’s monetary policy tools but the introduction of CBDC in India
will require legal and regulatory changes. For this reason, the transition to a CBDC-led
digital economy in India will not be easy. But it is a necessary step.”
5) Public perception of the Digital Rupee in India- Aditya Kulkarni

“A “Digital Rupee” is a type of “CBDC (Central Banking Digital Currency)” which

represents the value of the fiat currency in a digital format. It is a type of payment that
exists entirely in electronic forms and is accounted for and transferred utilizing computers.
Unlike traditional money, digital currencies have low transaction costs and immediate
payments since they can be sent directly between parties. This transactional manner helps
in a better and efficient management of currency with respect to conventional payment
techniques that include clearinghouses or banks.”

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6) Concept note on Central Bank Digital Currency- Fintech department RBI 2022

“Central Bank Digital Currency (CBDC) is a digital form of currency notes issued by a
central bank. While most central banks across the globe are exploring the issuance of
CBDC, the key motivations for its issuance are specific to each country’s unique
requirements. This Concept Note explains the objectives, choices, benefits and risks of
issuing a CBDC in India, referred to as e₹ (digital Rupee). The e₹ will provide an
additional option to the currently available forms of money. It is substantially not different
from banknotes, but being digital it is likely to be easier, faster and cheaper. It also has all
the transactional benefits of other forms of digital money.”

7) The Promise of Digital Rupee- Accenture

“As the world around us becomes more hyper connected and ecosystem dependent, central
bank digital currency (CBDC) – a new digital form of money issued by central banks –
may just be the new infrastructure we need for ushering in more trust, resilience, and
efficiency. Taken together, these three differentiating characteristics – identifiability,
programmability, and distributed ledgers – can unleash a new set of economic possibilities.
These can be realized in three ways: central bank wholesale money (wholesale CBDC),
central bank digital retail money (retail CBDC), and commercial bank money (tokenized
deposits or the liabilities of commercial banks) created under fractional reserve banking.
While technically speaking, only Reserve Bank of India-(RBI) issued digital money can be
termed as digital rupee, for the sake of simplicity, we are also including tokenized rupee-
denominated commercial bank liabilities under the term ‘Digital Rupee’.”

8) Digital Rupee launched- It’s impact on Indian Economy and Banks- Economic times

“Digital currency launched by RBI shall be backed by the Sovereign, shall be legal, shall
act as a close substitute for paper currency for all its functions. Digital rupee as a medium
of exchange is expected to facilitate easier, faster, and cheaper methods of transacting

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 business. In the first pilot case, the usage of Digital Rupee currency shall be for settlement
of secondary market transactions in Government securities.”

9) The Digital Rupee: The next step in India’s Digital transformation- Sauradeep Bag

“The evolving CBDC space poses more questions than answers in terms of currency
design and implementation strategies. The introduction of the digital rupee would have
repercussions for the structure of payment and financial markets and, subsequently, for
individuals and businesses. Due to India’s inherent market intricacies and socio-
economic conditions, all stakeholders must consider the advantages and disadvantages
of the new digital currency. By leveraging the latest technology, central banks can
safeguard the finality of transactions, like physical cash and unlike stable coins or any
private cryptocurrency. But in the process, it must adhere to anonymity and data security
principles, which, according to David Chaum, is essential for any democracy. ”

10) Digital Rupee- A rival for cryptos? – Abhimanyu Sasi Pavoor

“Digital rupee will help to expand the digital economy and also will strengthen the banking
system. There can be positive or negative Impacts on introducing digital rupee. Usage of
Cash should be managed. People would probably look for CBDC alternatives precisely
when central banks are seeking negative interest rates. Alternatives might come in the form
of foreign money or personal cryptocurrencies, raising the risk of broad adoption. Because
these alternatives are not expressed in terms of the domestic unit of account, this would
ultimately decrease the effectiveness of monetary policy. So policymakers must carefully
assess the potential of the Digital Rupee in India while taking into account its effects on the
macroeconomy and liquidity, banking systems, and money markets.”

11) A Digital Rupee for Indian Retail: A Baseline Policy Assessment – Koan Advisory
Group

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 “The digital payments space in India has transformed in recent years. Policy focus on
digitization, innovation and development of open application programming interface (API)
stacks has played a key role in this growth. Consequently, payments using e-money wallets
and the Unified Payment Interface (UPI) network in particular are expected to triple from
current values, and surpass the USD 1 trillion mark by 2026. While the growth in digital
payments is exponential, cash still accounts for around half of all retail payment
transactions. As India forges ahead towards a ‘less-cash’ society, it must address security,
privacy and efficiency concerns in the face of rising frauds, growing trails of financial data
and liquidity-demanding deferred net settlement processes.”

12) India: Central Bank starts Digital Rupee Payments Pilot – HKTDC Research

“The Reserve Bank of India (RBI) started the pilot phase of its central bank digital currency
(CBDC), the digital rupee, on 1 November 2022. Initially targeting the wholesale finance
segment, nine banks are participating in the launch, including both state-owned and private
banks. These are the State Bank of India, Bank of Baroda, Union Bank of India,  HDFC
Bank, ICICI Bank, Kotak Mahindra Bank, YES Bank,  IDFC First Bank and HSBC. The
pilot phase will initially concentrate on secondary market government securities transaction
settlement, with a similar pilot to be rolled out for the retail segment within a month. 
The digital rupee is different from existing digital money available to the Indian public
because it is a central bank liability, and therefore legal tender. The RBI has also proposed
two versions of the digital rupee: retail (CBDC-R), and wholesale (CBDC-W). The CBDC-R
will be an electronic version of cash for retail transactions, while the CBDC-W will only be
for interbank transfers and related wholesale transactions.”

13) Central Bank Digital Currency- the ‘Digital Rupee’ in India -Jasdeep Kaur

“Central banks have now started to develop their own digital currencies, also called central
bank digital currencies or CBDCs. By the beginning of 2023, India's official digital
currency, which would resemble any of the present private company-run electronic wallets,

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 is most likely to be introduced. The CBDC will be a digital currency backed by the
government. The digital rupee is a Central Bank Digital Currency to be issued by the RBI
and will be backed by the reserves held by the central bank. The digital rupee will be
similar to other online or virtual currencies, but it will have some unique features. It will be
designed to reduce the cost of printing and circulating currency notes and to promote
financial inclusion. The CBDC can benefit consumers over conventional payment methods
in terms of liquidity, scalability, adoption, ease of transactions with anonymity, and quicker
settlement.”

14) Central Bank Digital Currency in Indian context – PWC

“CBDC is due to the value central banks foresee in terms of fulfilling public policy
objectives, maintaining economic stability, and providing people with a convenient, safe
and reliable payments system. Each country’s position with respect to adopting CBDC
varies. A few countries are conducting research and testing iterations in order to set up their
CBDC in a phased manner, while others are sprinting towards deployment. In the Indian
context, there are ongoing discussions and efforts to evaluate how and when CBDC can be
implemented. This will unlock significant opportunities for the ecosystem players to come
up with services that make it easier and convenient for citizens to transact and make digital
payments for various use cases and requirements.”

15) India’ Digital Rupee: Opportunities and Concerns- Bazil shaikh

“The issuance of CBDCs is an experiment in the issuance of money. Money is meaningless

in isolation. It is a social construct which mediates between individuals and their socio-
economic ecosystem. It relates to human choice and the personal freedom to transact.
Policymakers typically highlight the efficiency gains that changes they propose will bring.
They also seek to address and mitigate the concerns. The job of civil society is to highlight

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 the possible consequences of these changes and whether the risks are acceptable. The BIS is
strongly in favors of CBDCs. The benefits of introducing the e-Rupee would have to be
weighed against the risk’s society is willing to accept.  Given India’s standing in the area of
digital payments and the sheer size of the endeavor, the Indian CBDC experience will be
looked at with great interest across the world.”

16) Central Bank Digital Currency- RBI concept note

“Earlier this year, introduction of CBDCs was announced in the Union Budget and an
appropriate amendment was also made to the RBI Act, 1934. Additionally, from 1 November
2022, RBI has commenced the pilot programme of CBDC-W (wholesale) and is soon
planning to launch the first pilot for the retail segment as well6 . CBDC holds a lot of
promise and potential to expand the existing payment systems and address the needs of a
wider category of users, in addition to supporting cross-border transactions. However, in the
absence of relevant international benchmarks, extensive stakeholder consultation along with
iterative technology design must take place to develop a solution that meets the envisaged
requirements. As this is an evolving area, it will be important to watch how this
implementation progresses in India and worldwide.”

17) Central Bank Digital Currency- way forward – Thiruppathy V

“ Evolution is the process we cannot stop at any time. But, how well we adopt those
evolutions will help us in many ways. CBDC is one such thing. It will act as an adhesive in
the fragile financial sector which joins all the stakeholders with a single bridge. CBDC will
have its own risk ranges between privacy, cyber space, digital literacy, technological and
legal risk. But it has more potential benefits which we can see in many areas in future. With
the CBDC, all the citizens of a nation can come into the bracket of formal economy. So,
everyone can claim all the financial and economic advantages. CBDC can eliminate the risk
of default by counterparty as well as the Money laundering and tax evasion which are major
threats to many developing nations.”

18) A study on advantages and disadvantages of Digital currency in India with special
reference to Rupee – International Journal of Research Publication and Reviews

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 “A Central Bank Digital Currency (CBDC) is a digital form of a legal tender issued by the
central bank. It is equivalent to fiat cash and may be exchanged one-to-one but in a different
form. A sovereign currency in electronic form will appear on the central bank’s balance sheet
as a liability (currency in circulation). It should be possible to exchange CBDCs for cash.
Central banks worldwide are promoting digital currencies for various reasons including to
popularize usage of electronic money and thwart the emergence of private digital assets such
as cryptocurrencies. According to a poll by the Bank for International Settlements (BIS) in
2021, 86% of central banks were actively researching possibilities for CBDCs, 60% were
experimenting with the technology and 14% were conducting trial projects. More than 91
countries, representing over 90% of the world’s GDP, have their own centralized digital
currency in works. India is in the development stage of its digital currency.”

19) India: RBI ‘s Digital Rupee: Expected advantages and Implications- Avisha Gupta
and Somya Yadav

“The RBI's concept notes on CBDC ("Concept Note"), on the basis of the usage of CBDCs
within the payment ecosystem, broadly categorizes it into two: general purpose or retail
CBDCs ("CBDC-R") and wholesale CBDCs ("CBDC-W"). CBDC-R is an electronic
version of cash which is primarily meant for retail transactions and is intended to be made
available for use by all viz. private sector, non-financial, consumers and businesses. On the
other hand, CBDC-W is designed for restricted access to select financial institutions and is
intended for the settlement of interbank transfers and related wholesale transactions.”

20) Roadmap to Digital Rupee isn’t too clear- Shehnaz Ahmed

“Most central banks, the RBI has also flagged concerns about the impact of CBDC on the
disintermediation of the banking sector and financial stability. Therefore, the economic
design of the CBDC will be crucial. This will include examining issues of whether CBDC
can be interest-bearing like deposits, and limits on CBDC holdings or transactions.”

21) India’s e-Rupee: New money with wrinkles of the old- Jaspreet Kalra

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 “CBDC is similar to massively popular UPI in being QR-code driven, the overlap between
the two ends there. UPI is more like a network of pipes for money to flow through but the
CBDC is money itself. UPI transactions involve communication with banks but CBDC
tokens—in the form of digital bank notes—flow from one wallet to the other. Given that the
CBDC will enter a crowded space for payment options in India, it is bound to face an uphill
climb to popularity. If the ultimate objective for the CBDC is to replace cash as a payment
tool, the new form of money might just need to start with loosening some of the straps that
constraints its predecessor”.

22) A Digital Rupee and a Tax on Digital Assets in India – Vagisha Srivastava

“ Getting back to digital payments, its widespread adoption in India enabled by the Unified
Payment Interface (UPI) has resulted in reduction of cost of transportation, storage and
distribution of cash. Even so, the adoption cannot be generalized. Unlike in the US, where
financial exclusion is often voluntary on the part of users, in India it often results from lack
of access to financial institutions and financial illiteracy. The Jandhan, Aadhar and Mobile
Payments (JAM Trinity) tried to address this gap, but the technological divide and low
literacy levels complicates the process. What this means is that the method for delivery of
Digital Rupee must be carefully designed in order to avoid expanding existing inequalities.”

23) View from India: Digital Rupee Pilot Carries Promise of Sovereign backing – Kavitha
Srinivasa

“The RBI is India’s central banking institution, which controls the monetary policy of the Indian
rupee. Last week, it rolled out its CBDC, also known as Digital Rupee, e-Rupee or e ₹. The State
Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra
Bank, Yes Bank, IDFC First Bank and HSBC are the nine banks that are part of the pilot project.
As per CBDC, the digital rupee would be legal tender in a digital form of fiat currency, which
can be understood as the Indian rupee. The Digital Rupee is a currency issued by central banks

53 | P a g e
responsible for governing and managing the asset. It is also exchangeable one-to-one at par with
the fiat currency.”

24) e₹ (Digital Rupee) – the future money- Sarika Verma

“As of July 2022, there are 105 countries in the process of exploring CBDC, a number that
covers 95% of global Gross Domestic Product (GDP). 10 countries have launched a CBDC,
the first of which was the Bahamian Sand Dollar in 2020 and the latest was Jamaica’s JAM-
DEX. Currently, other countries, including major economies like China and South Korea, are
in the pilot stage and preparing for possible launches. Increasingly, CBDCs are being seen as
a promising invention and as the next step in the evolutionary progression of sovereign
currency. However, CBDC could also pose certain risks that may have a bearing on
important public policy issues, such as risk to financial stability, monetary policy, financial
market structure and the cost and availability of credit. They need to be carefully evaluated
against the potential benefits.”

25) Digital Rupee- Jay Ashar

“The primary goal of CBDCs is to render businesses and consumers privacy, transferability,
convenience, accessibility, and financial security. Cash, or the fiat currency, is a
counterbalance to all the risks associated with financial instruments, including a bank
deposit. CBDCs would serve as a toggle switch towards the risk of a bank collapse. They
also provide a country's central bank with the means to implement monetary policies to
provide stability, control growth, and influence inflation.”

3.2 Statement of the problem-

 However, India is in a unique situation where the payment infrastructure is already low-
cost and widely democratized.
 High level of digital illiteracy is the biggest challenge and hindrance in success of e-
rupee in India. Digital services are not available in local languages, which is a major
barrier to financial literacy.

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  e-rupee has the capacity to accumulate sensitive user and payment data on a massive
scale. In the wrong hands, this data can be easily used to spy on private transactions of
citizens.
 India’s regulatory system evolving risks of data privacy and guide banking institutions
to place appropriate safeguard and to avoid any personal data breaking.
 A digital rupee may be aid but there is a need to enforce strict compliance of KYC
norms to prevent the digital currency’s use for fright financing.
 e-rupee transactions could become a deterrent to its uptake India where cash
transactions are hugely popular, largely because of their anonymity.

3.3Need for the study

The need for the study about these digital rupee goes as follows:

 To understand the concept of digital rupee.

 To study the entire process of issue and working of this digital rupee.
 To study the reason for introducing digital rupee in India
 To study the needs for digital rupee as digital payment alternative.
 To know the positive and negative impact on economy by digital rupee
 To measure the awareness level of people on digital rupee.
 To analyze the benefit an investor gets from purchasing a digital rupee
 To get briefed about the recent trends added up in digital currency

3.4 SCOPE OF THE STUDY:

The significance of this study is to know the evolution of digital rupee in India and
understanding the benefits for traders and general public who purchase digital rupee by this
information I can evaluate the total tranches of digital rupee. To understand the actual process of
digital rupee and to know the actual demonization of currency and how it is efficient to bolster

55 | P a g e
 Indian economy and while drawing the conclusions I would also learn the various controversies
emerging for the downfall of another digital currencies in India.

3.5 OBJECTIVES:

The main objectives to study this research dissertation are:

 To know about central bank digital currency.

 To know about the process and working of digital rupee in India
 To study the utilization of digital rupee by retail and wholesale segment.
 To understand benefits of digital rupee that bolster the Indian economy
 To evaluate the overall tranches of digital rupee
 To know the perception and acceptance of digital rupee.
 To provide general awareness to public on digital rupee or CBDC.
 To pinpoint the digital rupee positivity and negativity in India

3.6 RESEARCH METHODOLOGY:

The present study is descriptive in nature. The chapter explains the research design, in particular
with regard to the chosen population and sample, data collection tools and methods, and the
validity and reliability of the measuring devices. A summary of the statistical analysis methods
used to establish the hypothesis will be included in the chapter's conclusion.

Primary data: Primary data is obtained through questionnaires about the general awareness
on digital rupee.
Secondary data: The secondary data is analyzed through following ways
1. Library Records
2. Reference books
3. Websites
4. Newspapers and reports(RBI Reports, Economic times, Deccan Herald, Business line)
5. Research papers:
 Central bank digital currencies, motives, economic implications and research frontiers
(Auer, Frost, Gambacorta, & Shin, 2021)
 Digital currencies and its implications for India (kaur, 2020)

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  The Promise of Digital Rupee (Accenture,2022)
 The Digital Rupee : The next step in India’s digital transformation (Sauradeep
Bag,2022)
 Central bank digital currency in India: the case for a digital rupee(K. Ozili,
ResearchGate,2022)

SAMPLE DESIGN:
 Research method: The type of research method used is descriptive method. And primary
and secondary analysis

 Sampling technique: The sampling technique followed in the research is Convenience

Sampling under Non-Probability method of sampling.

 Sample Size: A sample size of 120 individuals has been chosen on the basis of Convenience
sampling.

 Sampling Area: Bangalore

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 CHAPTER -4

DATA ANALYSIS AND INTERPRETATION

4.1Primary data analysis- Digital Rupee awareness, perception and

acceptance

1. AWARENESS LEVEL BASED ON GENDER

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 AWARENES
GENDER S   UNAWARENESS   TOTAL
MALE 70   4   74
FEMALE 47   3   50
TOTAL 117   7   124

AWARENES UNAWARENES
EXPECTED S   S   TOTAL
MALE 69.82258065   4.177419355   74
FEMALE 47.17741935   2.822580645   50
TOTAL 117   7   124

NULL HYPOTHESIS:-THE AWARENESS LEVEL ON E-RUPEE DOES NOT DEPEND ON GENDER

ALTERNATIVE HYPOTHESIS:-THE AWARENESS LEVEL ON E-RUPEE DEPEND ON GENDER

CHISQUARE AWARENESS   UNAWARENESS   TOTAL

MALE 0.000450823   0.007535185   0.007535185
FEMALE 0.000667218   0.011152074   0.011152074
TOTAL 0.001118041   0.018687259   0.0198053
Chi-square value = 0.0198053

Table value = 3.841 @ DOF 1 at 5% significance level

Interpretation- The data is been analyzed using the total sample of 124 individuals comprising
of male and female respectively as per the analysis I have opted for chi square method of
statistical test with a base of 5%(0.05)significance level .The hypothesis was framed using a
proper data study were the Null hypothesis (H0) was “the awareness level on E-rupee do not
depend on gender” were in the alternative hypothesis (H1) was “the awareness level on E-rupee
do depend on gender” The actual results after calculations was as follows:

Decision statement: the table value is greater than the calculated chi-square value

Value analysis: table value(3.841) and chi-square value(0.0198053)

End result: Null hypothesis(H0)Accepted, Alternative hypothesis(H1)Rejected

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 2. Awareness level based on age

AGE AWARENESS   UNAWARENESS   TOTAL

20-25 43   3   46
25-30 16   1   17
30-35 26   2   28
35& ABOVE 31   2   33
TOTAL 116   8   124

EXPECTED AWARENESS UNAWARENESS TOTAL  

20-25 43.03225806 2.96774194 46    
25-30 15.90322581 1.09677419 17    
30-35 26.19354839 1.80645161 28    

35& ABOVE 30.87096774 2.12903226 33    

TOTAL 116 8 124    

NULL HYPOTHESIS:- THE AWARENESS LEVEL OF E-RUPEE DOES NOT DEPEND ON AGE LIMIT
ALTERNATIVE HYPOTHESIS:- THE AWARENESS LEVEL OF E-RUPEE DEPEND ON AGE LIMIT

AWARENES UNAWARENES
CHISQUARE S   S TOTAL
20-25 2.41815E-05   0.000350631   0.000374813
25-30 0.00058889   0.008538899   0.009127789
30-35 0.00143016   0.020737327   0.022167488
35& A 0.00053932   0.007820137   0.008359457
TOTAL 0.002582551   0.037446995   0.040029546

Chi-square value= 0.040029

Table value=7.815

Interpretation:- The data was analyzed using the total sample of 124 individuals comprising of
male and female with the age groups of 18 – 50 and above respectively as per the analysis I have
opted for chi square method of statistical test with a base of 5%(0.05)as a level of significance

60 | P a g e
 hypothesis was framed using a proper data study were the Null hypothesis (H0) “The awareness
level of E-rupee does not depends upon age limit” were in the alternative hypothesis (H1) was
“the awareness level of E-rupee depends upon age limit” The actual results after calculations was
as follows:

Decision statement: the table value is greater than the chi-square value.

Value analysis: table value(7.815), chi-square value(0.04003)

End result: Null hypothesis(H0)Accepted, Alternative hypothesis(H1)Rejected

Final output after result: “THE AWARENESS LEVEL OF E-RUPEE DOES NOT DEPEND
ON AGE LIMIT.”

3. Awareness level based on education

EDUCATION AWARENESS   UNAWARENSS   TOTAL

BELOW SSLC 1   0   1
SSLC 10   1   11
UPTO PUC 0   1   1
GRADUATION 44   3   47
PG 59   4   63
PH.D 1   0   1
TOTAL 115   9   124

UNAWARENES
EXPECTED AWARENESS   S   TOTAL
BELOW SSLC 0.927419355   0.07258065   1
SSLC 10.2016129   0.7983871   11
UPTO PUC 0.927419355   0.07258065   1
GRADUATION 43.58870968   3.41129032   47
PG 58.42741935   4.57258065   63
PH.D 0.927419355   0.07258065   1

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 TOTAL 115   9   124

NULL HYPOTHESIS:- THE AWARENESS LEVEL DOES NOT DEPEND ON EDUCATION LEVEL

ALTERNATIVE HYPTHESIS:-THE AWARENESS LEVEL DEPEND ON EDUCATIONAL LEVEL

CHISQUARE AWARENESS   UNAWARENESS   TOTAL

BELOW SSLC 0.005680224   0.072580645   0.07826087
SSLC 0.003984445   0.050912349   0.054896794
UPTO PUC 0.927419355   11.85035842   12.77777778
GRADUATION 0.003880815   0.049588195   0.05346901
PG 0.005611211   0.071698811   0.077310022
PH.D 0.005680224   0.072580645   0.07826087
TOTAL 0.952256275   12.16771907   13.11997534
Chi-square value=13.11997

Table value=11.07

Interpretation:- The data was analyzed utilizing a total sample of124people, including male and
female participants with various educational backgrounds, including below SSLC,SSLC,upto
12th, 12th, UG, PG, and other levels, respectively. The alternative hypothesis (H1) was "The
awareness levels of E-rupee depend upon qualifications," and the null hypothesis (H0) was "The
awareness levels of E-Rupee does not depend on qualification." According to the analysis, I
chose the chi square method of statistical test with a base of 5% (0.05) as a level of significance.
Following computations, the actual outcomes were as follows:

Decision statement: table value is lesser than the calculated chi-square value

Value analysis: chi-square value(13.11997) and table value(11.07)

End result: Null hypothesis(H0)Rejected, Alternative Hypothesis(H1)Accepted

Final output after test: “the awareness level of E-rupee depends upon qualifications.”

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 4. DIGITAL RUPEE WILL BE EFFICIENT IN INDIA ACCORDING TO MALE AND
FEMALE (PERCEPTION)

EFFICIENT MALE FEMALE TOTAL

AGREE 45 30 75
STRONGLY AGREE 19 12 31
NEUTRAL 8 6 14
DISAGREE 1 1 2
STRONGLY DISAGREE 1 1 2
TOTAL 74 50 124

EXPECTED   MALE   FEMALE   TOTAL

AGREE   44.75806452   30.2419355   75
STRONGLY AGREE   18.5   12.5   31
NEUTRAL   8.35483871   5.64516129   14
DISAGREE   1.193548387   0.80645161   2
STRONGLY DISAGREE   1.193548387   0.80645161   2
TOTAL   74   50   124

NULL HYPOTHESIS:- “THE DIGITAL RUPEE WILL NOT BE EFFICIENT IN INDIA

ACCORDING TO MALE & FEMALE”.

ALTERNATIVE HYPOTHESIS:-“THE DIGITAL RUPEE WILL BE EFFICIENT IN INDIA

ACCORDING TO MALE & FEMALE”.

CHISQUARE MALE FEMALE TOTAL

0.93855733
AGREE 8 0.001935484 0.940492822
0.92780394
STRONGLY AGREE 9 0.02 0.947803949
NEUTRAL 0.01507037 0.022304147 0.037374517

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 0.03138622
DISAGREE 5 0.046451613 0.077837838
STRONGLY DISAGREE 0.03138622 0.046451613 0.077837838
5
TOTAL 1.94420410 0.137142857 2.081346964
7

Chi-square=2.0813
Table value=9.488
Interpretation:- The data was analyzed utilizing a total sample of 124 people, including
male and female participants with various perceptions like, agree, strongly agree, neutral,
disagree and strongly disagree respectively. The alternative hypothesis (H1) was "the digital
rupee will be efficient in India according to male and female," and the null hypothesis (H0)
was "The digital rupee will not be efficient in India according to male and female."
According to the analysis, I chose the chi square method of statistical test with a base of 5%
(0.05) as a level of significance. Following computations, the actual outcomes were as
follows:

Decision statement: table value is much greater than calculated chi-square value

Value analysis: chi-square(2.0813) and table value(9.488)

End result: Null hypothesis(H0)Accepted, Alternative hypothesis(H1)Rejected

Final results after test: “the digital rupee will not be efficient in India according to male and
female.”

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 5. DIGITAL RUPEE WILL BE EFFICIENT IN INDIA ACCORDING TO DIFFERENT
AGE GROUPS

EFFICIENT 20-25 25-30 30-35 35& ABOVE TOTAL

AGREE 28 10 17 21 76
STRONGLY AGREE 12 4 7 8 31
NEUTRAL 5 2 3 4 14
DISAGREE 1 1 0 0 2
STRONGLY DISAGREE 0 0 1 0 1
TOTAL 46 17 28 33 124

NULL HYPOTHESIS:-THERE IS NO RELATION BETWEEN THE AGE AND PERCEPTION ABOUT

DIGITAL RUPEE WILL BE EFFICIENT IN INDIA
ALTERNATIVE HYPOTHESIS:- THERE IS A RELATION BETWEEN THE AGE AND PERCEPTION
ABOUT DIGITAL RUPEE WILL BE EFFICIENT IN INDIA

EXPECTED 20-25 25-30 30-35 35&ABOVE TOTAL

AGREE 28.1935484 10.41935484 17.16129032 20.2258065 76
STRONGLY AGREE 11.5 4.25 7 8.25 31
NEUTRAL 5.19354839 1.919354839 3.161290323 3.72580645 14
DISAGREE 0.74193548 0.274193548 0.451612903 0.53225806 2
STRONGLY
DISAGREE 0.37096774 0.137096774 0.225806452 0.26612903 1
TOTAL 46 17 28 33 124

CHISQUARE 20-25 25-30 30-35 35& ABOVE TOTAL

AGREE 0.001328707 0.016878059 0.001515886 0.029634203 0.049357
STRONGLY AGREE 0.02173913 0.014705882 0 0.007575758 0.044021
NEUTRAL 0.007212983 0.003388452 0.008229098 0.020178746 0.039009
DISAGREE 0.089761571 1.921252372 0.451612903 0.532258065 2.994885
STRONGLY DISAGREE 0.370967742 0.137096774 2.65437788 0.266129032 3.428571
TOTAL 0.491010134 2.093321539 3.115735768 0.855775803 6.555843

Chi-square value=6.555843

Table value=21.026

Interpretation:- The data was analyzed utilizing a total sample of 124 people, including male
and female participants with a age group of 18-50 and above, respectively. The alternative
65 | P a g e
hypothesis (H1) was " There is a relation between the age and perception about digital rupee will
be efficient in India," and the null hypothesis (H0) was "There is no relation between the age and
perception about digital rupee will be efficient in India." According to the analysis, I chose the
chi square method of statistical test with a base of 5% (0.05) as a level of significance. Following
computations, the actual outcomes were as follows:

Decision statement: table value is much greater than the calculated chi-square value.

Value analysis: Chi-square(6.555843) and table value (21.026)

End result: Null hypothesis(H0)Accepted, Alternative hypothesis(H1)Rejected

Final result after test: “ THERE IS NO RELATION BETWEEN THE AGE AND
PERCEPTION ABOUT DIGITAL RUPEE WILL BE EFFICIENT IN INDIA”.

6. DIGITAL RUPEE WILL BE EFFICIENT IN INDIA BASED ON EDUCATION

LEVEL

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 BELO UPTO GRADUATIO TOTA
EFFICIENT W SSLC SSLC PUC N PG PH.D L
AGREE 1 7 0 29 39 0 76
STRONGLY AGREE 0 3 0 12 16 0 31
NEUTRAL 0 1 0 5 7 1 14
DISAGREE 0 0 1 1 0 0 2
STRONGLY
DISAGREE 0 0 0 0 1 0 1
TOTAL 1 11 1 47 63 1 124
BELOW UPTO GRADUATIO TOTA
EXPECTED SSLC SSLC PUC N PG PH.D L

0.61290322 6.74193 0.61290322 0.61290

AGREE 6 5 6 28.80645161 38.6129 3 76
STRONGLY
AGREE 0.25 2.75 0.25 11.75 15.75 0.25 31
0.11290322 1.24193 0.11290322 7.11290 0.11290
NEUTRAL 6 5 6 5.306451613 3 3 14
0.01612903 0.17741 0.01612903 1.01612 0.01612
DISAGREE 2 9 2 0.758064516 9 9 2
STRONGLY 0.00806451 0.00806451 0.50806 0.00806
DISAGREE 6 0.08871 6 0.379032258 5 5 1

TOTAL 1 11 1 47 63 1 124

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 BELO
CHISQU W UPTO GRADUA TOTA
ARE SSLC SSLC PUC TION PG   PH.D L

0.24448 0.00987 0.61290 0.00130043 0.003 0.61290 1.48534

AGREE 2173 8068 3226 7 881   3226 78
STRONG
LY 0.02272 0.00531914 0.003 0.78201
AGREE 0.25 7273 0.25 9 968   0.25 468

NEUTRA 0.11290 0.04713 0.11290 0.01769781 0.001 6.97004 7.26247

L 3226 0289 3226 4 792   6083 275

DISAGR 0.01612 0.17741 60.0161 0.07721345 1.016 0.01612 61.3191

EE 9032 9355 2903 2 129   9032 489
STRONG
LY
DISAGR 0.00806 0.08870 0.00806 0.37903225 0.476 0.00806 0.96825
EE 4516 9677 4516 8 318   4516 397

0.63157 0.34586 1.502 7.85714 71.8172

TOTAL 8947 4662 61 0.48056311 089   2857 381
NULL HYPOTHESIS:-THERE IS NO RELATION BETWEEN THE EDUCATION LEVEL AND
PERCEPTION ABOUT DIGITAL RUPEE EFFICIENT IN INDIA
ALTERNATIVE HYPOTHESIS:- THERE IS A RELATION BETWEEN THE EDUCATION LEVEL AND
PERCEPTION ABOUT DIGITAL RUPEE EFFICIENT IN INIDA

Chi-square=71.8172

Table value=21.026

Interpretation: The data was analyzed utilizing a total sample of 124 people, including male
and female participants with various educational backgrounds, including below SSLC, SSLC, up
to 12th, 12th, UG, PG, and other levels, respectively. The alternative hypothesis (H1) was “There
is a relation between educational qualification and perception about digital rupee will be efficient
in India " and the null hypothesis (H0) was " There is no relation between educational

68 | P a g e
 qualification and perception about digital rupee will be efficient in India." According to the
analysis, I chose the chi square method of statistical test with a base of 5% (0.05) as a level of
significance. Following computations, the actual outcomes were as follows:

Decision statement: table value is much lesser than the calculated chi-square value.

Value analysis: chi-square(71.8172) and table value(21.026)

End result: Null hypothesis(H0)Rejected, Alternative hypothesis(H1)Accepted.

Final output after test: “THERE IS A RELATION BETWEEN EDUCATIONAL

QUALIFICATION AND PERCEPTION ABOUT DIGITAL RUPEE WILL BE EFFICIENT IN
INDIA "

7. ACCEPTANCE RATE OF DIGITAL RUPEE BY MALE AND FEMALE

RATE MALE FEMALE TOTAL

1 4 3 7
2 4 3 7
3 18 12 30
4 30 21 51
5 17 12 29
TOTAL 73 51 124

EXPECTED MALE FEMALE TOTAL

1 10.0196078 2.879032258 7
2 4.12096774 2.879032258 7
3 17.6612903 12.33870968 30
4 30.0241935 20.97580645 51
5 17.0725806 11.92741935 29
TOTAL 73 51 124

NULL HYPOTHESIS: THERE IS NO RELATION BETWEEN GENDER AND ACCEPTENCE RATE

OF DIGITAL RUPEE

ALTERNATIVE HYPOTHESIS: THERE IS A RELATION BETWEEN GENDER AND ACCEPTANCE

RATE OF DIGITAL RUPEE

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 CHISQUARE MALE FEMALE TOTAL
0.00508267
1 3.616476728 8 3.621559406
0.00508267
2 0.003550912 8 0.00863359
0.00929791
3 0.006495802 3 0.015793715
2.79049E-
4 1.94952E-05 05 4.74001E-05
0.00044166
5 0.000308562 7 0.000750229
0.01993284
TOTAL 3.626851499 1 3.64678434

Chi-square=3.64678

Table value=9.488

Interpretation:- The data is been analyzed using the total sample of 124 individuals comprising
of male and female respectively as per the analysis I have opted for chi square method of
statistical test with a base of significance level 5%(0.05).The hypothesis was framed using a
proper data study were the Null hypothesis (H0) was “THERE IS NO RELATION BETWEEN
GENDER AND ACCEPTENCE RATE OF DIGITAL RUPEE” were in the alternative
hypothesis (H1) was “THERE IS A RELATION BETWEEN GENDER AND ACCEPTENCE
RATE OF DIGITAL RUPEE” The actual results after calculations was as follows:

Decision statement: table value much greater than the calculated chi-square value

Value analysis: chi-square(3.64678) and table value(9.488)

End result: Null hypothesis(H0)Accepted, Alternative hypothesis(H1)Rejected

Final output after test: “THERE IS NO RELATION BETWEEN GENDER

AND ACCEPTANCE RATE OF DIGITAL RUPEE”.

8. ACCEPTANCE RATE AND AGE

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 RATE 20-25 25-30 30-35 35&ABOVE TOTAL
1 3 1 2 1 7
2 2 1 1 3 7
3 11 4 7 8 30
4 19 7 11 14 51
5 11 4 7 7 29
TOTAL 46 17 28 33 124

EXPECTED 20-25 25-30 30-35 35&ABOVE TOTAL

1 2.59677419 0.959677419 1.580645161 1.86290323 7
2 2.59677419 0.959677419 1.580645161 1.86290323 7
3 11.1290323 4.112903226 6.774193548 7.98387097 30
4 18.9193548 6.991935484 11.51612903 13.5725806 51
5 10.7580645 3.975806452 6.548387097 7.71774194 29
TOTAL 46 17 28 33 124

NULL HYPOTHESIS:- THERE IS NO RELATION BETWEEN THE AGE LIMIT AND

ACCEPTANCE RATE OF DIGITAL RUPEE

ALTERNATIVE HYPOTHESIS:- THERE IS A RELATION BETWEEN THE AGE LIMIT AND

ACCEPTANCE RATE OF DIGITAL RUPEE
CHISQUAR
E 20-25 25-30 30-35 35&ABOVE TOTAL
1 0.062612703 0.001694226 0.111257406 0.399699763 0.575264098
2 0.137146864 0.001694226 0.213298223 0.694072057 1.04621137

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 3 0.001496026 0.003099304 0.007526882 3.25839E-05 0.012154796
4 0.000343756 9.30163E-06 0.023131833 0.013460027 0.036944918
5 0.005440828 0.000147222 0.031145717 0.06674925 0.103483018
TOTAL 0.207040177 0.00664428 0.386360061 1.174013681 1.7740582
Chi-square=1.7740582

Table value=21.026

Interpretation:- The data was analyzed using the total sample of 131 individuals comprising of
male and female with the age groups of 18 – 50 and above respectively as per the analysis I have
opted for chi square method of statistical test with a base of 5%(0.05)as a level of significance
hypothesis was framed using a proper data study were the Null hypothesis (H0) “THERE IS NO
RELATION BETWEEN THE AGE LIMIT AND ACCEPTANCE RATE OF DIGITAL
RUPEE” were in the alternative hypothesis (H1) was “THERE IS A RELATION BETWEEN
THE AGE LIMIT AND ACCEPTANCE RATE OF DIGITAL RUPEE” The actual results after
calculations was as follows:

Decision statement: table value is much greater than the calculated chi-square value

Value analysis: Chi-square(1.7740582) and table value(21.026)

End result: Null hypothesis(H0)Accepted, Alternative hypothesis(H1)Rejected

Final output after test: THERE IS NO RELATION BETWEEN THE AGE LIMIT AND
ACCEPTANCE RATE OF DIGITAL RUPEE”

9. ACCEPTANCE RATE AND EDUCATION

BELOW UPTO GRADUATIO

RATE SSLC SSLC PUC N PG PH.D TOTAL
1 0 0 0 3 4 0 7
2 0 0 1 3 3 0 7
3 0 3 0 11 15 1 30
4 1 5 0 19 26 0 51

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 5 0 3 0 11 15 0 29
TOTAL 1 11 1 47 63 1 124
EXPECTE BELOW UPTO GRADUATIO
D SSLC SSLC PUC N PG PH.D TOTAL
0.05645161 0.6209677 0.0564516 3.55645 0.05645
1 3 4 1 2.653225806 2 2 7
0.05645161 0.6209677 0.0564516 3.55645 0.05645
2 3 4 1 2.653225806 2 2 7
0.24193548 2.6612903 0.2419354 15.2419 0.24193
3 4 2 8 11.37096774 4 5 30
0.41129032 4.5241935 0.4112903 25.9112
4 3 5 2 19.33064516 9 0.41129 51
0.23387096 2.5725806 0.2338709 14.7338 0.23387
5 8 5 7 10.99193548 7 1 29
TOTAL 1 11 1 47 63 1 124

NULL HYPOTHESIS:-THERE IS NO RELATION BETWEEN ACCEPTANCE RATE AND EDUCATION

LEVEL
ALTERNATIVE HYPOTHESIS:- THERE IS A RELATION BETWEEN ACCEPTANCE RATE AND
EDUCATION LEVEL

CHISQUA BELOW UPTO GRADUATI

RE SSLC SSLC PUC ON PG PH.D TOTAL
0.0564516 0.6209677 0.0564516 0.0870638 0.0564516 0.9227095
1 13 42 13 0.045323071 58 13 09
0.0564516 0.6209677 15.770737 0.0870638 0.0564516 16.636995
2 13 42 33 0.045323071 58 13 22
0.2419354 0.0431085 0.2419354 1.1805598 2.3752688 4.0949106
3 84 04 84 0.012102494 22 17 06
0.8426628 0.0500402 0.4112903 1.8434409 0.4112903 3.5643803
4 72 51 23 0.005655591 61 23 19

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 0.2338709 0.0710132 0.2338709 0.9462409 0.2338709 1.7188730
5 68 47 68 5.91674E-06 73 68 4
1.4313725 1.4060974 16.714285 4.1443694 3.1333333 26.937868
TOTAL 49 86 71 0.108410143 72 33 7
Chi-square=26.93788

Table value=31.14

Interpretation:- The data was analyzed utilizing a total sample of 124 people, including male
and female participants with various educational backgrounds, including below SSLC, SSLC, up
to 12th, 12th, UG, PG, and other levels, respectively. The alternative hypothesis (H1) was "
THERE IS A RELATION BETWEEN ACCEPTANCE RATE AND EDUCATION LEVEL,"
and the null hypothesis (H0) was " THERE IS NO RELATION BETWEEN ACCEPTANCE
RATE AND EDUCATION LEVEL." According to the analysis, I chose the chi square method
of statistical test with a base of 5% (0.05) as a level of significance. Following computations, the
actual outcomes were as follows:

Decision statement: table value is greater than the calculated chi-square value

Value analysis: chi-square(26.93788) and table value(31.14)

End result: Null hypothesis(H0)Accepted, Alternative hypothesis(H1)Rejected

Final output after test: “THERE IS NO RELATION BETWEEN ACCEPTANCE RATE AND
EDUCATION LEVEL.”

10. PREFER TO MAKE USE OF DIGITAL PAYMENT APPS BASED ON AGE GROUP

PREFERENCE 20-25 25-30 30-35 35 & ABOVE   TOTAL

1.VERY FREQUENTLY 35 13 21 25   94
2.MOST OFTEN 6 2 3 4   15
3.OFTEN 1 0 1 1   3
4.REARLY 3 1 2 2   8
5.NEVER   1 1 1 1   4
TOTAL 46 17 28 33   124

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 TOTA
EXPECTED 20-25 25-30 30-35 35&ABOVE L
34.870967 12.887096
1.VERY FREQUENTLY 7 8 21.22580645 25.01612903 94
5.5645161 2.0564516
2.MOST OFTEN 3 1 3.387096774 3.991935484 15
1.1129032 0.4112903
3.OFTEN 3 2 0.677419355 0.798387097 3
2.9677419 1.0967741
4.REARLY 4 9 1.806451613 2.129032258 8
1.4838709
5.NEVER 7 0.5483871 0.903225806 1.064516129 4
TOTAL 46 17 28 33 124

NULL HYPOTHESIS:- THERE IS NO RELATION BETWEEN AGE AND PREFERENCE OF

USING DIGITAL PAYMENT APPS
ALTERNATIVE HYPOTHESIS:- THERE IS A RELATION BETWEEN AGE AND PREFERENCE
OF USING DIGITAL PAYEMNT APPS

CHISQUARE 20-25 25-30 30-35 35&ABOVE TOTAL

1.VERY FREQUENTLY 0.000477455 0.00098914 0.002402196 1.03991E-05   0.00387919
0.00154965
2.MOST OFTEN 0.034081346 2 0.044239631 1.6292E-05   0.079886922
0.41129032
3.OFTEN 0.01145395 3 0.153609831 0.050912349   0.627266453
0.00853889
4.REARLY 0.000350631 9 0.020737327 0.007820137   0.037446995
0.37191650
5.NEVER 0.157784011 9 0.010368664 0.003910068   0.543979252
0.79428452
TOTAL 0.204147394 2 0.231357649 0.062669246   1.292458812
Chi-square=1.29245

Table value=21.026

Interpretation:- The data was analyzed using the total sample of 124 individuals comprising of
male and female with the age groups of 18 – 50 and above respectively as per the analysis I have

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 opted for chi square method of statistical test with a base of 5%(0.05)as a level of significance
hypothesis was framed using a proper data study were the Null hypothesis (H0) “THERE IS NO
RELATION BETWEEN AGE AND PREFERENCE OF USING DIGITAL PAYMENT
APPS” were in the alternative hypothesis (H1) was “THERE IS A RELATION BETWEEN
AGE AND PREFERENCE OF USING DIGITAL PAYMENT APPS” The actual results after
calculations was as follows:

Decision statement: table value is much greater than the calculated chi-square value.

Value analysis: chi-square(1.29245) and table value(21.026)

End result: Null hypothesis(H0)Accepted, Alternative hypothesis(H1)Rejected

Final output after test: “THERE IS NO RELATION BETWEEN AGE AND PREFERENCE
OF USING DIGITAL PAYMENT APPS”

11. PREFERENCE AND GENDER

PREFERENCE MALE FEMALE TOTAL

VERY FREQUENTLY 57 37 94
MOST OFTEN 9 6 15
OFTEN 2 1 3
REARLY 5 3 8

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 NEVER 2 2 4
TOTAL 75 49 124

EXPECTED MALE   FEMALE TOTAL

56.8548
VERY FREQUENTLY 4   37.14516129 94
9.07258
MOST OFTEN 1   5.927419355 15
1.81451
OFTEN 6   1.185483871 3
REARLY 4.83871   3.161290323 8
2.41935
NEVER 5   1.580645161 4
TOTAL 75   49 124
NULL HYPOTHESIS:- THERE IS NO REALTION BETWEEN GENDER AND PREFERENCE TO USE
DIGITAL PAYMENT APPS.

ALTERNATIVE HYPOTHESIS:- THERE IS A RELATION BETWEEN GENDER AND PREFERENCE

TO USE DIGITAL PAYMENT APPS.

CHISQUARE MALE FEMALE TOTAL

0.00056728
VERY FREQUENTLY 0.000370625 3 0.000937907
0.00088874
MOST OFTEN 0.000580645 3 0.001469388
0.02902128
OFTEN 0.018960573 6 0.047981859
0.00822909
REARLY 0.005376344 8 0.013605442
0.11125740
Chi-
NEVER 0.072688172 6 0.183945578
0.14996381 square=0.2479
TOTAL 0.097976359 5 0.247940175

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 Table value=9.488

Interpretation:- The data is been analyzed using the total sample of 131 individuals comprising
of male and female respectively as per the analysis I have opted for chi square method of
statistical test with a base DOF ( Degree of Freedom ) of 5%(0.05).The hypothesis was framed
using a proper data study were the Null hypothesis (H0) was “THERE IS NO REALTION
BETWEEN GENDER AND PREFERENCE TO USE DIGITAL PAYMENT APPS” were in the
alternative hypothesis (H1) was “THERE IS A REALTION BETWEEN GENDER AND
PREFERENCE TO USE DIGITAL PAYMENT APPS” The actual results after calculations was
as follows:

Decision statement: table value is greater than the calculated chi-square value.

Value analysis: chi-square(0.2479) and table value(9.488)

End result: Null hypothesis(H0)Accepted, Alternative hypothesis(H1)Rejected

Final output after test: “THERE IS NO REALTION BETWEEN GENDER AND

PREFERENCE TO USE DIGITAL PAYMENT APPS”

12.PREFERENCE AND EDUCATION

BELOW UPTO GRADUATIO

PREFERENCE SSLC SSLC PUC N PG PH.D TOTAL
VERY
FREQUENTLY 1 8 1 36 48 0 94
MOST OFTEN 0 1 0 6 8 0 15
OFTEN 0 0 0 1 2 0 3
REARLY 0 1 0 3 4 0 8
NEVER 0 1 0 1 1 1 4
TOTAL 1 11 1 47 63 1 124

BELOW UPTO
EXPECTED SSLC SSLC PUC GRADUATION PG PH.D TOTAL
VERY 0.75806451 0.75806
FREQUENTLY 6 8.33870968 0.75806452 35.62903226 47.75806 5 94

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 0.12096774 0.12096
MOST OFTEN 2 1.33064516 0.12096774 5.685483871 7.620968 8 15
OFTEN 0.02419354 0.26612903 0.02419355 1.137096774 1.524194 0.02419 3
8 4
REARLY 0.06451612 0.70967742 0.06451613 3.032258065 4.064516 0.06451 8
9 6
NEVER 0.03225806 0.35483871 0.03225806 1.516129032 2.032258 0.03225 4
5 8
TOTAL 1 11 1 47 63 1 124
NULL HYPOTHESIS:- THERE IS NO REALTION BETWEEN EDUCATION AND PREFERNCE TO
USE DIGITAL PAYMENT APPS
ALTERNATIVE HYPOTHESIS:- THERE IS A REALTION BETWEEN EDUCATION AND
PREFERENCE TO USE DIGITAL PAYMENT APPS

CHI- BELOW UPTO GRADUAT

SQUARE SSLC SSLC SSLC ON PG PH.D TOTAL
VERY
FREQUEN 0.077213 0.013758 0.077213 0.00386249 0.001225 0.7580 0.931337
TLY 452 033 452 8 61 65   562
MOST 0.120967 0.082160 0.120967 0.01739876 0.018851 0.1209 0.481313
OFTEN 742 313 742 5 34 68   643
0.024193 0.266129 0.024193 0.01652939 0.148532 0.0241 0.503771
OFTEN 548 032 548 8 173 94   248
0.064516 0.118768 0.064516 0.00034317 0.001024 0.0645 0.313683
REARLY 129 328 129 1 066 16   952
0.032258 1.173020 0.032258 0.524321 29.032 30.96981
NEVER 065 528 065 0.1757035 557 26   978
0.319148 1.653836 0.319148 0.21383733 0.693954 33.19992
TOTAL 936 235 936 2 745 30   618

Chi-square=33.1999

Table value=31.41

Interpretation:- The data was analyzed utilizing a total sample of 124 people, including male
and female participants with various educational backgrounds, including below SSLC, SSLC, up
to 12th, 12th, UG, PG, and other levels, respectively. The alternative hypothesis (H1) was "

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 THERE IS A REALTION BETWEEN EDUCATION AND PREFERNCE TO USE DIGITAL
PAYMENT APPS," and the null hypothesis (H0) was " THERE IS NO REALTION BETWEEN
EDUCATION AND PREFERNCE TO USE DIGITAL PAYMENT APPS." According to the
analysis, I chose the chi square method of statistical test with a base of 5% (0.05) as a level of
significance. Following computations, the actual outcomes were as follows:

Decision statement: table value is lesser than the calculated chi-square value

Value analysis: chi-square(33.1999) and table value(31.41)

End result: Null hypothesis(H0)Rejected, Alternative hypothesis(H1)Accepted

final output after test: “THERE IS A REALTION BETWEEN EDUCATION AND

PREFERNCE TO USE DIGITAL PAYMENT APPS."

13. EFFICIENT CHANGE IN THE INDIAN ECONOMY AFTER ISSUE OF DIGITAL

RUPEE( PERCEPTION BY MALE AND FEMALE)

PARTICULARS MALE FEMALE TOTAL

1.STRONGLY AGREE 17 12 29
2.AGREE 46 30 76
3.NEUTRAL 8 6 14
4.DISAGREE 2 2 4
5.STRONGLY DISAGREE 1 0 1
TOTAL 74 50 124

EXPECTED MALE FEMALE TOTAL

1.STRONGLY AGREE 17.3064516 11.69354839 29
2.AGREE 45.3548387 30.64516129 76
3.NEUTRAL 8.35483871 5.64516129 14
4.DISAGREE 2.38709677 1.612903226 4
5.STRONGLY AGREE 0.59677419 0.403225806 1
TOTAL 74 50 124

NULL HYPOTHESIS:-THERE IS NO EFFICIENT CHANGE IN THE INDIAN ECONOMY AFTER ISSUE

OF DIGITAL RUPEE

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ALTERNATIVE HYPOTHESIS:- THERE IS EFFICIENT CHANGE IN THE INDIAN ECONOMY
AFTER ISSUE OF DIGITAL RUPEE

CHISQUARE MALE FEMALE TOTAL

1.STRONGLY AGREE 0.00542645 0.008031146 0.013457596
0.00917725
2.AGREE 9 0.013582343 0.022759602
3.NEUTRAL 0.01507037 0.022304147 0.037374517
4.DISAGREE 0.06277245 0.092903226 0.155675676
0.27244986
5.STRONGLY AGREE 9 0.403225806 0.675675676
0.36489639
TOTAL 8 0.540046668 0.904943066

Chi-square=0.90494

Table value=9.488

Interpretation:- The data is been analyzed using the total sample of 124 individuals comprising
of male and female respectively as per the analysis I have opted for chi square method of
statistical test with a base significance level of 5%(0.05).The hypothesis was framed using a
proper data study were the Null hypothesis (H0) was “THERE IS NO EFFICIENT CHANGE IN
THE INDIAN ECONOMY AFTER ISSUE OF DIGITAL RUPEE” were in the alternative
hypothesis (H1) was “THERE IS An EFFICIENT CHANGE IN THE INDIAN ECONOMY
AFTER ISSUE OF DIGITAL RUPEE” The actual results after calculations was as follows:

Decision statement: table value is greater than the calculated value chi-square

Value analysis: chi-square(0.90494) and table value(9.488)

End result: Null hypothesis(H0)Accepted, Alternative hypothesis(H1)Rejected

Final output after test: “THERE IS NO EFFICIENT CHANGE IN THE INDIAN ECONOMY
AFTER ISSUE OF DIGITAL RUPEE”.

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 14. PERCEPTION AND AGE

PARTICULARS 20-25 25-30 30-35 35& ABOVE TOTAL

STRONGLY AGREE 11 4 7 7 29
AGREE 28 10 17 21 76
NEUTRAL 5 2 3 4 14
DISAGREE 1 1 1 1 4
STRONGLY DISAGREE 1 0 0 0 1
TOTAL 46 17 28 33 124

35&
EXPECTED 20-25 25-30 30-35 ABOVE TOTAL
10.758064
STRONGLY AGREE 5 3.975806452 6.548387097 7.71774194 29
28.193548
AGREE 4 10.41935484 17.16129032 20.2258065 76
5.1935483
NEUTRAL 9 1.919354839 3.161290323 3.72580645 14
1.4838709
DISAGREE 7 1.919354839 0.903225806 1.06451613 5.37096774
0.3709677
STRONGLY DISAGREE 4 0.137096774 0.225806452 0.26612903 1
TOTAL 46 18.37096774 28 33 125.370968

NULL HYPOTHESIS:- THERE IS NO RELATION BETWEEN AGE AND PERCEPTION ABOUT

EFFICIENT CHANGE IN ECONOMY AFTER ISSUE OF DIGITAL RUPEE  
ALTERNATIVE HYPOTHESIS:- THERE IS A RELATION BETWEEN AGE AND PERCEPTION
ABOUT EFFICIENT CHANGE IN ECONOMY AFTER ISSUE OF DIGITAL RUPEE

CHISQUARE 20-25 25-30 30-35 35& ABOVE TOTAL

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STRONGLY AGREE 0.005440828 0.000147222 0.031145717 0.06674925 0.103483018
AGREE 0.001328707 0.016878059 0.001515886 0.029634203 0.049356855
NEUTRAL 0.007212983 0.003388452 0.008229098 0.020178746 0.03900928
DISAGREE 0.157784011 0.440363242 0.010368664 0.003910068 0.612425985
STRONGLY DISAGREE 1.066619916 0.137096774 0.225806452 0.266129032 1.695652174
TOTAL 1.238386446 0.597873749 0.277065817 0.386601299 2.499927312

Chi-square=2.4999

Table value=21.026

Interpretation:- The data was analyzed using the total sample of 124 individuals comprising of
male and female with the age groups of 18 – 50 and above respectively as per the analysis I have
opted for chi square method of statistical test with a base of 5%(0.05)as a level of significance
hypothesis was framed using a proper data study were the Null hypothesis (H0) “THERE IS NO
RELATION BETWEEN AGE AND PERCEPTION ABOUT EFFICIENT CHANGE IN
ECONOMY AFTER ISSUE OF DIGITAL RUPEE” were in the alternative hypothesis (H1) was
“THERE IS A RELATION BETWEEN AGE AND PERCEPTION ABOUT EFFICIENT
CHANGE IN ECONOMY AFTER ISSUE OF DIGITAL RUPEE” The actual results after
calculations was as follows:

Decision statement: table value is much greater than the calculated chi-square value

Value analysis: chi-square(2.499) and table value(21.026)

End result: Null hypothesis(H0)Accept, Alternative hypothesis(H1)Rejected

Final output after tests: “THERE IS NO RELATION BETWEEN AGE AND PERCEPTION
ABOUT EFFICIENT CHANGE IN ECONOMY AFTER ISSUE OF DIGITAL RUPEE”.

15. PERCEPTION AND EDUCATION

BELOW UPTO
PARTICULARS SSLC SSLC PUC GRADUATION PG PH.D TOTAL
STRONGLY
AGREE 0 3 0 11 15 0 29

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AGREE 1 7 0 29 39 0 76
NEUTRAL 0 1 0 5 7 1 14
DISAGREE 0 0 0 2 2 0 4
STRONGLY
DISAGREE 0 0 1 0 0 0 1
TOTAL 1 11 1 47 63 1 124

BELOW UPTO GRADUATIO TOTA

EXPECTED SSLC SSLC PUC N PG PH.D L
STRONGLY 0.23387096 2.5725806 0.2338709 14.7338 0.23387
AGREE 8 5 7 10.99193548 7 1 29
0.61290322 6.7419354 0.6129032 0.61290
AGREE 6 8 3 28.80645161 38.6129 3 76
0.11290322 1.2419354 0.1129032 7.11290 0.11290
NEUTRAL 6 8 3 5.306451613 3 3 14
0.03225806 0.3548387 0.0322580 2.03225 0.03225
DISAGREE 5 1 6 1.516129032 8 8 4
STRONGLY 0.00806451 0.0887096 0.0080645 0.50806 0.00806
DISAGREE 6 8 2 0.379032258 5 5 1
TOTAL 1 11 1 47 63 1 124

NULL HYPOTHESIS:- THERE IS NO RELATION BETWEEN EDUCATION LEVEL AND

PERCPETION ABOUT EFFICIENT CHANGE IN THE INDIAN ECONOMY.

ALTERNATIVE HYPOTEHSIS:- THERE IS A RELATION BETWEEN EDUCATION LEVEL AND

PERCEPTION ABOUT EFFICIENT CHANGE IN INDIAN ECONOMY.

CHISQUA BELOW UPTO GRADUAT

RE SSLC SSLC PUC ION PG PH.D TOTAL
STRONGL 0.233870 0.071013 0.233870 0.004806 0.233870 0.777438
Y AGREE 968 247 968 5.91674E-06 928 968 995
0.244482 0.009878 0.612903 0.003880 0.612903 1.485347
AGREE 173 068 226 0.001300437 669 226 799
0.112903 0.047130 0.112903 0.001792 6.970046 7.262472
NEUTRAL 226 289 226 0.017697814 115 083 752
DISAGRE 0.032258 0.354838 0.032258 0.000512 0.032258 0.606551
E 065 71 065 0.154426905 033 065 841
STRONGL 0.008064 0.088709 122.0080 0.379032258 0.508064 0.008064 123
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Y
DISAGRE
E 516 677 645 516 516
0.631578 0.571569 0.519056 7.857142 133.1318
TOTAL 947 991 123 0.55246333 261 857 114

Chi-square=133.1381

Table value=31.41

Interpretation:- The data was analyzed utilizing a total sample of 131 people, including male
and female participants with various educational backgrounds, including 12th, 12th, UG, PG,
and other levels, respectively. The alternative hypothesis (H1) was " THERE IS A RELATION
BETWEEN EDUCATION LEVEL AND PERCEPTION ABOUT EFFICIENT CHANGE IN
INDIAN ECONOMY.," and the null hypothesis (H0) was " THERE IS NO RELATION
BETWEEN EDUCATION LEVEL AND PERCEPTION ABOUT EFFICIENT CHANGE IN
INDIAN ECONOMY." According to the analysis, I chose the chi square method of statistical
test with a base of 5% (0.05) as a level of significance. Following computations, the actual
outcomes were as follows:

Decision statement: table value much lesser than the calculated chi-square value

value analysis: chi-square (133.1381) and table value(31.41)

End result: Null hypothesis(H0)Rejected, Alternative hypothesis(H1)Accepted

Final output after tests: “THERE IS A RELATION BETWEEN EDUCATION LEVEL AND
PERCEPTION ABOUT EFFICIENT CHANGE IN INDIAN ECONOMY”.

16. Reasons for using digital payment apps for transactions

Count of 8. Reasons for using digital payment apps

Row Labels for transactions
Adopt to technology 1
In case of cash pickpocket 1
None 1
Non - availability of cash in hand 59
Reluctance to pay cash in one go 48

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 Tax benefit 14
Grand Total 124

Total
60
40
20
0 Total
gy et Nn nd go fit
lo ck ha e ne
o o in on e
ch
n
ck
p
h in xb
te pi ca
s h Ta
to h as
pt c as of yc
o of ili
ty pa
Ad se to
ca i l ab ce
In va an
-a lu
c t
n
No Re

Interpretation:- the above chart and pivot table shows the reasons for using digital payment
apps for cash transactions. The major reason for using digital apps is non-availability of cash in
hand is about 59% of users’ reason and another reason is reluctance to pay cash in one go. In
digital mode can transact one rupee and also in paisa, we can pay in one go and there will not
burden of carrying coins.

4.2 ANALYSING THE DEMOGRAPHIC VARIABLES FOR SURVEY

The samples I have collected is from all levels. Digital Rupee awareness across different age
groups, educational levels, and genders. This example is a descriptive analysis of my subject that
includes everyday usage, requirement and helps me comprehend how users behave and view
Digital Rupee.

DEMOGRAPHIC VARIABLE ANALYSIS

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87 | P a g e
A questionnaire that inquiries about a user’s level of familiarity with digital rupee was used to
collect the replies. The optimum sample size was 120 individuals, evenly split between men and
women, but thankfully I was able to get information from 131 individuals, covering the entire
age range of 18 to 50 and above.
I can learn more about the levels of digital rupee awareness among different age groups,
educational levels, and genders thanks to the samples I've collected. This sample is a descriptive
analysis of my subject that covers everyday usage and requirements and helps me comprehend
how investors think about and behave toward electoral bonds.

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4.3 TOOLS AND TECHNIQUES TO EVALUATE SAMPLES AND
ANALYZE HYPOTHESIS DECISION

The tools and techniques that has been implemented to analyze and evaluate the samples and
make a hypothesis decision is CHI SQUARE statistical analysis tool this measure can be
used to make an appropriate hypothesis decision on the samples collected and make my
study evaluative and evidence full worthiness to my report

A small Description on tools of analysis

1) MS Excel
Using tables to store and analyze popularly known as Microsoft Excel, is a program that
is often utilized in the majority of organizations or enterprises worldwide. It offers a
variety of features, tools, and functions to make this program beneficial for international
businesses in numerous areas. numerical and statistical data using algorithms and
functions, Microsoft Excel is a spreadsheet tool. Simply said, MS Excel is a robust
spreadsheet application that comes with Microsoft Office and is mostly used to enter
data into tables. It has a number of rows and columns where data may be entered. The
application is regarded as useful for a variety of activities, including bookkeeping,
creating pay slips, sorting and filtering data interactively, and calculating weekly costs.
popularly known as Microsoft Excel, is a program that is often utilized in the majority of
organizations or enterprises worldwide.

2) Chi square technique

A statistical method for assessing the discrepancy between actual and predicted data is
the Chi-Square test. This test may also be performed to see if our data's categorical
variables are related to it. It is useful to determine if a discrepancy between two
categorical variables is the result of coincidence or an association between them. The
distribution of a categorical variable must be tested using a chi-square test or analogous
nonparametric test. Nominal or ordinal categorical variables can represent categories like
animals or nations. Since they can only have a few specific values, they cannot have a
normal distribution.

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DATA ANALYSIS CONFIRMATION

Questionnaire name A general survey on digital rupee based on awareness,

perception and acceptance

Survey location Bangalore and in campus

Total days taken for data 25 days (28 December 2022 to 22 January 2023)
analysis and interpretation

Guide meetings during data 2 meeting

analysis 3 online meeting
5 field analysis meeting

Confirmation I attest that the data analysis and interpretation shown above is
correct and has been supported by a number of tools and
techniques.

GUIDE SIGNATURE STUDENT SIGNATURE

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Dr. SUMERA ALURU (P03CJ21M0111)

Chapter-5
FINDINGS AND CONCLUSION

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5.1 Findings

From the above data and analysis, we can find the following

 The awareness level on E-Rupee does not depend on gender

 The awareness level of E-rupee does not depend on age limit
 The awareness level of E-rupee depends upon qualifications
 The digital rupee will not be efficient in India according to male and female
 There is no relation between the age and perception about digital rupee will be efficient
in India
 There is a relation between educational qualification and perception about digital rupee
will be efficient in India
 There is no relation between gender and acceptance rate of digital rupee
 There is no relation between the age limit and acceptance rate of digital rupee
 There is no relation between acceptance rate and education level
 There is no relation between age and preference of using digital payment apps
 There is no relation between gender and preference to use digital payment apps
 There is a relation between education and preference to use digital payment apps
 There is no efficient change in the Indian economy after issue of digital rupee
 There is no relation between age and perception about efficient change in economy after
issue of digital rupee
 There is a relation between education level and perception about efficient change in
Indian economy.
 The major reason for using digital apps is non-availability of cash in hand is about 59%
of users’ reason and another reason is reluctance to pay cash in one go.

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5.2 Suggestions

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5.3 Conclusion

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5.4 BIBLIOGRAPHY AND REFERENCES

WEBSITE VIEW:

https://www.drishtiias.com/daily-updates/daily-news-editorials/e-rupee-to-bolster-indian-
economy

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