@angelhinson
There are no indications that it will replace cash entirely at the moment. But any comments here would just be speculation. If the RBI feels that the eRupee is robust enough and well received by everyone, sure, it could replace cash going in its entirety (but no one knows right now!)
Do you mean physical cash or a bank deposit? If physical cash is converted, it will first become a bank deposit and then an eRupee. So it's like first depositing cash into a bank and then withdrawing it again. Both the note that you deposited and the note that you withdrew were already "manufactured", they just got rearranged b/w the bank and its customers.
Cost will of course be borne by the RBI. Right now the RBI bears the cost of printing physical money so it's the equivalent. Don't think there will be a transaction fee (there is none with cash) but again no one knows what it will be in the future. I can foresee an initial conversion fee (from bank deposit to eRupee and then none afterwards).
Is e-rupee another parallel currency or will it completely replace cash?
There are no indications that it will replace cash entirely at the moment. But any comments here would just be speculation. If the RBI feels that the eRupee is robust enough and well received by everyone, sure, it could replace cash going in its entirety (but no one knows right now!)
If both coexist, when cash is converted to e-rupee, do they burn\destroy same amount of rupee?
Do you mean physical cash or a bank deposit? If physical cash is converted, it will first become a bank deposit and then an eRupee. So it's like first depositing cash into a bank and then withdrawing it again. Both the note that you deposited and the note that you withdrew were already "manufactured", they just got rearranged b/w the bank and its customers.
Who covers the cost of printing\mining e-rupee and the cost of the infra to keep the wallets and transactions running ? Will there be a transaction fee?
Cost will of course be borne by the RBI. Right now the RBI bears the cost of printing physical money so it's the equivalent. Don't think there will be a transaction fee (there is none with cash) but again no one knows what it will be in the future. I can foresee an initial conversion fee (from bank deposit to eRupee and then none afterwards).