Sbi: SBI to allow UPI transactions for Digital Rupee: What it means for users

The Reserve Bank of India (RBI) launched the first pilot of the Digital Rupee or e-rupee in December 2022. The Digital Rupee is a tokenised digital version of the Indian Rupee which is issued by the RBI as a central bank digital currency (CBDC). As part of the apex bank’s CBDC programme, the State Bank of India (SBI) has made the NPCI’s UPI system interoperable with the digital rupee. SBI was among the first few banks to take part in the RBI’s retail digital e-rupee project in 2022. The bank said that with this move, it aims to deliver unprecedented convenience and accessibility to its customers.
eRupee by SBI app
Users will be able to access the SBI digital rupee through the ‘eRupee by SBI’ app. The bank will also allow users to scan any merchant UPI QR code for fast and secure transactions.
In a statement to PTI, the bank said: “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.
SBI also claimed that this integration will be “a game changer” for the digital currency ecosystem. The bank also added that the move is the outcome of its commitment to push the boundaries of digital innovation to accelerate the transition to a more cashless economy.

The bank even noted that it remains dedicated to providing secure, efficient and user-friendly solutions that will reshape how transactions are conducted.

SBI aims to revolutionise India’s payments system by bridging the gap between CBDC and the extensively used UPI platform. With this move in the realm of digital payments, the future of CBDC integration appears promising, the bank added.
IDFC First Bank announces UPI integration with e-rupee
Apart from SBI, IDFC First Bank has announced the integration of UPI QR codes with its CBDC. The bank’s executive director Madhivanan Balakrishnan said that the UPI interoperability feature will dramatically enhance the adoption of CBDC across the country. IDFC First Bank was also a part of RBI’s CBDC initiative for retail users.