SBI integrates UPI interoperability in eRupee CBDC app
The State Bank of India (SBI) has implemented unified payments interface (UPI) interoperability in its central bank digital currency (CBDC) mobile application called "eRupee by SBI." This move aims to provide convenience and accessibility to SBI's CBDC users, allowing them to scan the merchant UPI QR codes for transactions. To note, SBI was among the first banks to take part in the Reserve Bank of India's (RBI) retail digital e-rupee project.
RBI launched the digital rupee project in October 2022
On October 31, 2022, RBI launched the first pilot of the digital rupee in the wholesale segment and kick-started the pilot for the retail category a month later. In December, SBI joined the central bank's retail digital e-rupee (e₹) project. Nine banks were identified as participants in the wholesale pilot, while eight banks, including SBI, took part in the retail pilot project. The retail digital rupee (e₹-R), is designed for day-to-day transactions.
These are the participants of the retail pilot project
The eight banks taking part in the retail pilot project include SBI, Kotak Mahindra Bank, IDFC First Bank, and ICICI Bank. Yes Bank, Bank of Baroda, Union Bank of India, and HDFC Bank are also participants. Under the pilot project, the abovementioned banks may invite certain customers and merchants to try the service via their mobile applications.
UPI interoperability will make transactions easier
By implementing UPI interoperability in its CBDC mobile application, SBI seeks to improve the customer experience by allowing people to scan any merchant UPI QR code for payments. This feature will simplify transactions and reduce the need for carrying cash, making it more convenient for customers. The integration of UPI interoperability is a significant step toward the future of digital currency in India.
