Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
4. Explain the mechanism behind the functioning of e-rupee? What are the types of e-rupee? What are the advantages associated with it? (250 words)
Difficulty level: Easy
Reference: Indian Express
Why the question:
The Reserve Bank of India (RBI) on Thursday launched the Central Bank Digital Currency (CBDC) — digital rupee or e-rupee (e₹) — for the common man.
Key Demand of the question:
To write about the benefits of e-rupee and analyse its potential as a digital currency and future digital currencies.
Directive word:
Explain – Clarify the topic by giving a detailed account as to how and why it occurred, or what is the context. You must be defining key terms wherever appropriate and substantiate with relevant associated facts.
Structure of the answer:
Introduction:
Start the answer by giving context.
Body:
Write about the mechanism on which the e-rupee works and explain the with examples.
Next, write about the various types and e-rupee and their features.
Next, write about the advantages offered by e-rupee over traditional currency and other forms of payment.
Conclusion:
Conclude by summarising.
