RBI Retail Digital rupee launching tomorrow, December 1: Check full list of banks offering digital wallet transactionThe e₹-R would be in the form of a digital token that represents legal tender. It would be issued in the same denominations that paper currency and coins are currently issued. It would be distributed through intermediaries, i.e., banks.

New Delhi: A month after Reserve Bank of India (RBI) had started a pilot in the digital rupee - wholesale segment on November 1, the central bank will launch the first pilot for retail digital rupee (e₹-R) in four Indian cities --Mumbai, New Delhi, Bengaluru and Bhubaneswar -- tomorrow (Thursday, December 1). RBI will later expand it to nine more cities in the initial phase.

The e₹-R would be in the form of a digital token that represents legal tender. It would be issued in the same denominations that paper currency and coins are currently issued. It would be distributed through intermediaries, i.e., banks. 

Users will be able to transact with e₹-R through a digital wallet offered by the participating banks and stored on mobile phones / devices. Transactions can be both Person to Person (P2P) and Person to Merchant (P2M). 

Payments to merchants can be made using QR codes displayed at merchant locations. The e₹-R would offer features of physical cash like trust, safety and settlement finality. As in the case of cash, it will not earn any interest and can be converted to other forms of money, like deposits with banks.

Here is the full list of banks offering digital wallet transaction for e₹-R

Eight banks have been identified for phase-wise participation in this pilot. The first phase will begin with four banks, viz., State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank in four cities across the country. Four more banks, viz., Bank of Baroda, Union Bank of India, HDFC Bank and Kotak Mahindra Bank will join this pilot subsequently. The pilot would initially cover four cities, viz., Mumbai, New Delhi, Bengaluru and Bhubaneswar and later extend to Ahmedabad, Gangtok, Guwahati, Hyderabad, Indore, Kochi, Lucknow, Patna and Shimla. The scope of pilot may be expanded gradually to include more banks, users and locations as needed, said RBI.

The Central Bank further added that the pilot will test the robustness of the entire process of digital rupee creation, distribution and retail usage in real time. Different features and applications of the e₹-R token and architecture will be tested in future pilots, based on the learnings from this pilot.

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hra

Avoid the 3 mistakes below :

Tax expert Chirag Chauhan of CA Chauhan & Co Chartered Accountants said that it often happens that salaried individuals make three big mistakes while claiming HRA, due to which they get into trouble later. Avoid these mistakes.

1. Make sure to make a rent agreement

If you live by paying rent in the house which is in the name of your relative or family member, then you will get the benefit of house rent allowance. Many times it happens that due to the relative’s house, the rent agreement is not made. If your employer or tax department catches your eye, then the benefit of HRA deduction will be withdrawn. In this case, you will have to pay tax on this amount.

2. Transfer Online or Checkbook

 If you live in a rented house, then transfer money from your account to the landlord’s bank account only. Rent should not be paid in cash. If you pay more than Rs 5000 in cash, then it is necessary to put revenue stamp on every receipt. If you pay rent up to Rs 1 lakh in a financial year, then PAN of the landlord is not required. PAN number will have to be shared if the rent is paid more than that.

3. Must take rent receipt

 When you deposit the rent, then definitely get the rent receipt from the landlord. Your employer can prepare on the rent receipt. If this matter reaches the tax department, it will not accept the rent receipt. The tax department asks for more evidence. In many cases, the tenant pays more rent than the rent agreement. It is possible that in such cases the tenant deposits additional amount in cash. In this situation, the benefit of deduction will be available only on the amount for which you have the rent receipt.

How is tax exemption on HRA calculated ?

1.  How much HRA is given by the employer.
2.  If you live in metro cities then 50 percent of basic salary and dearness allowance.
3. If you live in non-metro cities, then 40 percent of basic salary and dearness allowance.
4. The amount of rent you have paid should be less than 10 percent of the basic salary and dearness allowance.

The least amount in the above four conditions will be exempted from tax.

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