Customers of seven major banks in India can now enjoy the convenience of using the Unified Payments Interface (UPI) QR code for digital rupee transactions. This latest development is part of the Reserve Bank of India's (RBI) Central Bank Digital Currency (CBDC) pilot project, aimed at revolutionizing digital payments in the country.
State Bank of India (SBI) and Bank of Baroda have recently joined the UPI interoperability bandwagon, allowing users of their Digital Rupee application to scan QR codes at various merchants. This means that customers can seamlessly make payments for their groceries and daily expenses using the digital rupee app.
Kotak Mahindra Bank and Yes Bank led the way by launching UPI interoperability on the RBI's CBDC app just days before. Axis Bank followed suit by integrating UPI interoperability into their 'Axis Mobile Digital Rupee' app.
HDFC Bank, the country's largest private lender, was the first commercial bank to complete the integration process, introducing a similar UPI QR code interoperability with the digital rupee. Canara Bank also jumped on the digital rupee bandwagon by launching the 'Canara Digital Rupee' mobile app in August.
What is the Central Bank Digital Currency programme
The RBI's Central Bank Digital Currency (CBDC) pilot programme, initiated in 2022, introduced the Digital Rupee as a tokenized digital version of the Indian Rupee.
Regulated and issued by the RBI, the Digital Rupee utilizes a unique QR code mechanism for transactions. By integrating CBDC with UPI QR codes, the digital rupee aims to become an essential component of everyday transactions, offering a secure and efficient means of making payments.
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