Yes Bank’s recent integration of the Unified Payments Interface (UPI) with the Reserve Bank of India’s (RBI) central bank digital currency, the digital rupee, marks a significant milestone in the evolution of India’s retail CBDC. Since its initial pilot launch in December, the digital rupee has undergone various developmental projects.
Announced on August 30, this integration introduces an enhanced level of usability to the digital rupee. Yes Bank account holders now have the convenience of conducting transactions using the digital rupee by simply scanning UPI QR codes within the Yes Bank app.
The Unified Payments Interface (UPI) serves as India’s national payment portal and is operated by the National Payments Corporation of India (NPCI), a division under the RBI. Notably, the NPCI plays a pivotal role in providing the essential infrastructure for both the UPI and the digital rupee. With a vast reach, the UPI is utilized by approximately 150 million merchants across India, as reported by local press sources.
This collaboration between Yes Bank and the UPI sets the stage for a more accessible and user-friendly digital rupee experience, marking a pivotal moment in the journey of India’s central bank digital currency.
Yes Bank proudly stood among the initial eight participating banks chosen for the retail digital rupee pilot project’s inception in December. This groundbreaking initiative witnessed the active involvement of 5,000 dedicated merchants and a thriving community of 50,000 central bank digital currency (CBDC) users. Remarkably, within just a few months, by the time February arrived, this collective effort had facilitated an astonishing 800,000 transactions, amounting to a substantial $134 million in value.
In parallel, a separate wholesale digital rupee pilot program was inaugurated in November, further showcasing the innovative strides taken in the realm of India’s digital currency landscape. Yes Bank’s pivotal role in these pioneering endeavors underscores its commitment to fostering innovation and technological advancement in the financial sector.
The digital rupee has already made significant inroads into India’s retail landscape, with select stores within the expansive Reliance Retail chain embracing this digital currency. This notable integration was launched in February through a collaborative program involving prominent financial institutions such as ICICI Bank, Kotak Mahindra Bank, and technology solutions provider Innoviti Technologies.
Under this innovative program, customers can seamlessly transact using the digital rupee by scanning QR codes at participating stores within the Reliance Retail network. This forward-looking initiative not only underscores the increasing acceptance of digital currency but also showcases the collaborative efforts of key players in the financial and retail sectors to foster digital payment adoption in India.
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