The State Bank of India (SBI) has integrated Unified Payments Interface (UPI) with its digital rupee (e₹), or Central Bank Digital Currency (CBDC), app with an aim to enhance user convenience.
SBI said that the feature will allow the users of ‘eRupee by SBI’ application to scan any merchant UPI QR code for swift and secure transactions.
“Bank feels that this integration will be a game changer for the digital currency ecosystem. The move is the outcome of our unwavering commitment to pushing the boundaries of digital innovation to accelerate the transition to a more cashless economy,” said SBI in a statement on Monday (September 4).
SBI was one of the first banks to participate in the retail digital e-rupee project by the Reserve Bank of India (RBI) towards the end of last year.
The RBI began the pilot of CBDC-Wholesale (e₹-W) in November last year and the pilot for retail digital rupee (e₹-R) commenced in December.
Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank and HSBC were also among the first set of banks to participate in the phase-wise pilots.
In May this year, the RBI, in its annual report, said it was looking to further expand the pilots of the CBDC for retail and wholesale segments during the current fiscal year – FY24.
As of March 31, 2023, the value of e₹-W in circulation stood at INR 10.39 Cr while the number for e₹-R was at INR 5.7 Cr, according to the annual report.
At a time when India’s digital transaction ecosystem is booming, Reliance’s newest entity Jio Financial Services (JFS) is also set to explore new-age technologies such as CBDC for its products.
Meanwhile, SBI in its statement today said that its move to bring UPI interoperability to CBDC makes the future of CBDC integration more promising.
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