The seamless integration of CBDC with UPI marks a significant leap for the bank, enhancing the acceptance and utilization of digital currencies in everyday transactions.
New Delhi: The State Bank of India (SBI) has enabled interoperability between its digital rupee (DigiRupee) and the Unified Payments Interface (UPI). This means that customers can now use their DigiRupee balance to make payments through UPI QR codes. UPI is a popular payment system in India that allows users to make payments by scanning QR codes or entering UPI IDs. The interoperability between DigiRupee and UPI will make it easier for customers to use the digital currency for everyday transactions, as per a report in the news agency ANI.
Seamless Integration Of CBDC With UPI
Unified Payments Interface (UPI) is India’s mobile-based fast payment system, which facilitates customers to make round-the-clock payments instantly, using a Virtual Payment Address (VPA) created by the customer. UPI payment system has become hugely popular for retail digital payments in India, and its adoption is increasing at a rapid pace.
“The seamless integration of CBDC with UPI marks a significant leap for the bank, enhancing the acceptance and utilization of digital currencies in everyday transactions,” said SBI in a release. “Bank feels that this integration will be a game changer for the digital currency ecosystem.”
SBI Aims To Revolutionize Payments Made In India
“By bridging the gap between CBDC and the extensively used UPI platform, SBI aims to revolutionize payments made in India. With this move in the realm of digital payments, the future of CBDC integration appears promising,” it added.
About Central Bank Digital Currency (CBDC)
The digital rupee, also called as Central Bank Digital Currency (CBDC), was launched by the Reserve Bank of India on a pilot basis on December 1, 2022. In the Union Budget 2022-23, Finance Minister Nirmala Sitharaman announced about rolling out of the digital currency called Central Bank Digital Currency (CBDC). CBDCs are an electronic form of a sovereign currency. As is the case with cash, it will not earn any interest but can be converted to other forms of money, like deposits with banks.
The State Bank of India (SBI) was one of the first banks to participate in the Reserve Bank of India’s (RBI) retail digital e-rupee project in December 2022. The bank has now integrated CBDC with UPI, which will make digital currency payments more seamless and convenient.
This integration is a major milestone for SBI and the digital currency ecosystem as a whole. It is a testament to SBI’s commitment to pushing the boundaries of digital innovation and expediting the transition to a more cashless economy.
(With inputs from agencies)