- September 5, 2023
SBI Makes Digital Rupee Interoperable With UPI, Here’s What You Need To Know – News18
Digital Rupee or e₹ is a legal tender, similar to sovereign paper currency, and is issued in digital form by the RBI. (Representative image)
Digital Rupee: The central bank launched the first pilot of the digital rupee on October 31, 2022, in the wholesale segment and identified nine banks as participants.
SBI Digital Rupee: On September 4, the State Bank of India (SBI) and IDFC First Bank announced their adoption of unified payments interface (UPI) interoperability within their digital rupee (e₹) or central bank digital currency (CBDC) offerings.
The digital rupee is an initiative by the Reserve Bank of India launched last year. This digital form of legal tender is issued by the central bank and shares the essential attributes of physical currency, such as trustworthiness, security, and transaction finality with instantaneous settlement in the digital realm.
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“This feature, accessible through the ‘eRupee by SBI’ application, will empower SBI CBDC users to scan any merchant UPI QR code for transactions,” SBI said in the release.
The banks aim to deliver convenience and accessibility to its customers.
The central bank launched the first pilot of the digital rupee on October 31, 2022, in the wholesale segment and identified nine banks as participants.
The nine lenders include the State Bank of India, Bank of Baroda (BoB), Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank and HSBC.
A month later, RBI kick-started the pilot for the retail segment as well. The retail digital rupee, or e₹-R, can be used for day-to-day transactions.
Under the pilot project, banks can invite select customers and merchants to try the services through their mobile applications. After this, the users can make peer-to-peer transactions and peer-to-merchant transactions.
What is a central bank digital currency (CBDC)
“Digital Rupee” or “e₹” is a legal tender, similar to sovereign paper currency, and is issued in digital form by the Reserve Bank of India. e₹ will offer features of physical cash like trust, safety and settlement finality with atomicity (i.e. immediate settlement of transactions) in digital mode. e₹ represents a direct claim on the central bank. It can be used to carry out transactions or store value digitally, similar to the manner in which currency notes can be used in physical form.
