Yes Bank's integration of the Unified Payments Interface (UPI) with the Reserve Bank of India's (RBI) digital rupee app marks a significant milestone, allowing Yes Bank account holders to conduct transactions using the digital rupee through UPI QR codes. This development enhances the usability of India's central bank digital currency (CBDC) and is expected to provide more convenience and accessibility for customers.
Yes Bank has announced a major enhancement in the usability of the Reserve Bank of India's (RBI) central bank digital currency (CBDC), the digital rupee. This development comes as a result of Yes Bank's integration of the Unified Payments Interface (UPI) with the RBI's digital rupee app. The integration allows Yes Bank account holders in India to seamlessly conduct transactions using the digital rupee by scanning UPI QR codes.
The UPI, a national payment portal operated by the National Payments Corporation of India (NPCI), is a critical component of India's digital payments ecosystem. It provides the necessary infrastructure for both the UPI and the digital rupee. Notably, the UPI is widely used in India, with approximately 150 million merchants utilizing this payment platform, according to local reports.
This integration between the UPI and the digital rupee is a landmark achievement, as it marks the first instance of a central bank digital currency being integrated with the UPI in India. Ajay Rajan, an executive at Yes Bank, emphasized the transformative potential of this development. He stated that the interoperable CBDC platform promises to deliver seamless, efficient, and expanded transactional capabilities to Yes Bank customers. Rajan expects this enhancement to drive increased usage of the digital rupee, driven by the added convenience and accessibility it offers.
Yes Bank played a pivotal role in the initial stages of the digital rupee's rollout. It was one of the eight original participating banks in the retail digital rupee pilot project, which commenced in December. During this pilot phase, the project enlisted 5,000 participating merchants and served 50,000 CBDC users. By February, it had successfully conducted 800,000 transactions, totaling $134 million in value. Additionally, a separate wholesale digital rupee pilot was launched in November, further demonstrating the RBI's commitment to advancing CBDC adoption in India.
The digital rupee has already gained acceptance at select stores within the expansive Reliance Retail chain in India. This adoption is facilitated through a program utilizing QR codes that began in collaboration with ICICI Bank, Kotak Mahindra Bank, and Innoviti Technologies in February. These initiatives are indicative of the growing momentum and acceptance of digital rupee transactions within India's financial landscape, underscoring the potential for further growth and integration of CBDCs in the country.
(DEREK ANDERSEN, CoinTelegraph, 2023)