Customers from these four banks can now make payments using digital rupees
Adding to the trend, Yes Bank said on Wednesday that its Central Bank Digital Currency (CBDC) app for the Reserve Bank of India (RBI) now supports Unified Payments Interface (UPI) Interoperability.
Customers of the bank will now be able to pay for transactions by scanning any UPI QR code using the Yes Bank's digital rupee app.
Axis Mobile Digital Rupee
Axis Bank announced the introduction of UPI interoperability on their CBDC app called "Axis Mobile Digital Rupee" the day before to this launch.
Canara Digital Rupee
The largest private lender in the nation, HDFC Bank, introduced a comparable UPI QR code. It is compatible with the Indian digital currency last month. This makes it the first commercial bank in India to finish the integration process. In August, Canara Bank also released the "Canara Digital Rupee" smartphone app.
What is Central Bank Digital Currency (CBDC)?
In 2022, the RBI began a pilot programme for Central Bank Digital Currency (CBDC). A tokenized digital form of the Indian Rupee is represented by the Central Bank Digital Currency, commonly known as the Digital Rupee. The RBI issues and oversees it.
Through this endeavour, a digital cash system with a distinctive QR code transactional system was introduced. The digital rupee acquires a wider platform by merging CBDC with UPI QR codes, with the aim of becoming an integral component in daily transactions.
Payment with single QR code
For the Digital Rupee trial, all participating banks have taken steps to provide interoperability between the CBDC and the Unified Payments Interface (UPI). Customers can use this to pay with the CBDC wallet or UPI by scanning a single QR code.
The success of the Digital Rupee, India's digital currency, depends heavily on interoperability. One of the most popular payment options in India is UPI. According to HDFC Bank, an interoperable QR code enables a simple QR payment acceptance terminal to support the Scan & Pay feature from a variety of elements and payment choices.
The use of interoperable QR Codes paves the door for consumer and business interactions. It enables businesses to show a single QR code for both UPI and digital wallet payments.
The current QR codes are not needed to be replaced by retailers. On their storefront or through the banking mobile app, they only need to show a single QR code. A straightforward terminal for accepting QR payments will be possible because the current QR code is interoperable. The Scan & Pay service will be supported by a variety of payment methods.
Additionally, customers of qualifying banks that use digital rupees can make purchases by scanning the UPI QR code with the money in their digital rupee (CBDC) wallet.
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