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SBI introduces UPI interoperability for CBDC

The State Bank of India (SBI) announced it has implemented Unified Payments Interface (UPI) interoperability in Digital Rupee also called as Central Bank Digital Currency (CBDC). This feature, accessible through the ‘eRupee by SBI’ application, empowers SBI CBDC users to effortlessly scan any merchant UPI QR code, facilitating swift and secure transactions.

SBI was among the banks to actively participate in the Reserve Bank of India’s (RBI) retail digital e-rupee project, commencing in December 2022. The seamless integration of CBDC with UPI marks a milestone for the bank, as it enhances the acceptance and utilization of digital currencies in everyday transactions.

The bank envisions this integration for the digital currency ecosystem, a testament to its commitment to pushing the boundaries of digital innovation and expediting the transition to a more cashless economy. SBI said it remains steadfast in its dedication to providing secure, efficient, and user-friendly solutions that redefine the landscape of conducting transactions.

By bridging the gap between CBDC and the widely adopted UPI platform, SBI aims to revolutionize payments within India. This move in the realm of digital payments promises a future where CBDC integration becomes increasingly promising, heralding a new era of financial convenience for customers across the nation.

IDFC First Bank has announced the integration of UPI QR codes with its Central Bank Digital Currency (CBDC) app aimed to enhance the adoption of digital rupee and boost its utilisation. Being one of the banks that are a part of RBI’s CBDC initiative for retail users, this new feature will simplify payment acceptance for merchants, enabling them to seamlessly accept payments made with digital rupee, IDFC First Bank said in a statement.

Moreover, it said, individuals can effortlessly make payments using digital rupee through existing UPI QR codes at various merchants. The UPI interoperability feature will dramatically enhance the adoption of CBDC across the country, IDFC First Bank executive director Madhivanan Balakrishnan said.

The digital rupee is an initiative by the Reserve Bank of India launched last year. This digital form of legal tender is issued by the central bank and shares the essential attributes of physical currency, such as trustworthiness, security, and transaction finality with instantaneous settlement in the digital realm.

  • Published On Sep 5, 2023 at 04:23 PM IST

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