THE DIGITAL RUPEE IN INDIA: A STUDY ON ITS ECONOMIC IMPACT, CHALLENGES AND FUTURE PROSPECTS WITH REFERENCE TO COIMBATORE CITY

Money has always been at the heart of human civilization, constantly evolving to meet the changing needs of trade, economic growth, and technology. It all began with the barter system in ancient Mesopotamia, where people traded goods directly, but this system had its flaws, like the difficulty of finding someone who wanted exactly what you had. To solve this, commodities like grain and cattle became standardized forms of money. As societies grew, metal coins took over as the go-to currency, eventually being replaced by paper money backed by gold. The rise of banks brought about fiat money—currency issued by governments and not tied to any physical commodity—along with innovations like checks, credit cards, and electronic transactions, which made managing money easier and more efficient. Fast forward to the 21st century, and digital currencies like Bitcoin, along with mobile banking and e-wallets, have dramatically changed how we handle money. In response, governments have introduced Central Bank Digital Currencies (CBDCs), such as India's Digital Rupee, combining the best of digital convenience with the stability of state-backed money. These shifts show how money continues to adapt to our ever-changing world, balancing innovation with stability. Keywords: Banking, Digital Currency, Bitcoin, Mobile Banking, E-Wallets, Digital Rupee, Economic Growth, Technological Innovation