India’s Yes Bank has integrated unified payments interface (UPI) compatibility on the Reserve Bank of India (RBI) Central Bank Digital Currency (CBDC) app.
“This move is set to significantly expand the reach of the Digital Rupee and underscores the Bank’s commitment towards propelling digital innovations,” it stated.
Yes Bank Strives to Achieve Seamless Digital Rupee Transactions
According to the statement, users will be able to scan any UPI QR code through the bank’s Digital Rupee app in order to execute transactions.
UPI transactions are extremely popular in India. A recent report from The Economic Times revealed that more than 260 million Indians have utilized the technology for transactions. UPI transactions are bank-to-bank transactions. When a user opts for a UPI transaction, it doesn’t instantly transfer money like physical cash. Instead, banks move the funds periodically through settlements.
On the other hand, the digital rupee, just like physical cash, guarantees settlement and is government-issued legal tender. The digital currency removes the necessity for intermediary banks in transactions.
According to Yes Bank’s website, there are various ways to use digital rupee, similar to how one would with traditional fiat currency. Users can send digital rupee to virtual payment addresses (VPA) or to a phone number of the beneficiary who has also registered for digital rupee. Users can also generate QR codes of a specified amount and share it with another individual as a “collect request.”
Yes Bank anticipates that the integration will further boost its already rapid adoption in India:
“By integrating CBDC with UPI QR codes, the e₹ gains a broader platform, with the goal of becoming a staple in daily transactions.”
Ajay Rajan, Yes Bank’s Country Head of Digital & Transaction Banking, aims to make their services as straightforward as handling physical cash for users. “Our aim is to ensure that the e₹ transcends its role as just another type of currency,” Rajan stated.
The RBI launched the first retail pilot of the digital rupee (e₹) in December 2022. According to the RBI, the e-rupee provides “features of physical cash like trust, safety, and settlement finality.” It will earn any interest, just like physical cash.”
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Source: https://beincrypto.com/india-yes-bank-digital-rupee-upi-integration/