CBDC-UPI Interoperability Announced by HDFC Bank: All You Need To Know
Under the CBDC pilot programme, HDFC Bank has registered an impressive number of customers, surpassing one lakh, along with 1.7 lakh merchants.
HDFC Bank has announced the introduction of interoperability between the United Payment Interface (UPI) and the central bank digital currency (CBDC). This move will take effect starting Thursday, marking HDFC Bank as one of the pioneering banks in the nation to successfully complete the integration process.
In an official statement, the bank stated, "HDFC Bank today revealed the launch of an interoperable UPI QR code compatible with India's sovereign digital currency, the Central Bank Digital Currency (CBDC). With this development, HDFC Bank attains the distinction of being among the first banks in the country to accomplish the integration process."
Under the CBDC pilot programme, HDFC Bank has registered an impressive number of customers, surpassing one lakh, along with 1.7 lakh merchants. Going forward, HDFC Bank customers will have the ability to transact using the funds available in their CBDC wallet via the UPI QR code, eliminating the need to scan multiple QR codes when making payments at the same merchant.
On the merchant's side, a single QR code will be displayed either at the storefront or through the acquiring bank's mobile application. Consequently, merchants will not be required to modify their existing QR codes.
"The introduction of an interoperable UPI QR code empowers HDFC Bank merchants who are onboarded on the bank's CBDC platform to accept payments from their customers in the form of the Digital Rupee currency, thereby encouraging the usage of CBDC in day-to-day transactions," affirmed HDFC Bank.
HDFC Bank will facilitate Digital Rupee payments across several major cities, including Mumbai, Delhi, Chandigarh, Bhubaneshwar, Bengaluru, Ahmedabad, Guwahati, and Gangtok, among others.
Describing the initiative as forward-looking, Parag Rao, the Country Head for Payments, Consumer Finance, Technology & Digital Banking at HDFC Bank, expressed his belief that the QR interoperability between CBDC and the widely popular UPI would prove to be highly advantageous for its usage.
In a related development, Reserve Bank of India Deputy Governor T Rabi Sankar recently announced that the interoperability between CBDC and UPI QR codes had been permitted and would be implemented this month.
The central bank initiated the CBDC pilot programme for wholesale transactions on November 1, 2022, and for retail testing on December 1. By the end of 2023, the RBI aims to increase the daily transaction volume of CBDC retail to 1 million, compared to the current range of 5,000-10,000.
UPI, which boasts a daily transaction count of 31 crore, remains the most popular digital payment mode in India.
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.
Trending News
Top Headlines
