Yes Bank has significantly enhanced the usability of the Reserve Bank of India’s (RBI) central bank digital currency, the digital rupee, announced on August 30. They accomplished this milestone by seamlessly integrating the Unified Payments Interface (UPI) with the RBI’s digital rupee app.
This innovative integration now empowers Yes Bank account holders to conduct transactions using the digital rupee by scanning UPI QR codes. The UPI is a nationally recognized payment platform operated by the National Payments Corporation of India (NPCI), a subsidiary of the RBI. With a massive user base, the UPI is extensively utilized by around 150 million merchants across India.
The collaboration between Yes Bank and the RBI’s digital rupee app marks a historic moment as it’s the first time the UPI has been merged with a central bank digital currency (CBDC). This development promises to revolutionize transactional capabilities for Yes Bank customers, offering them a smoother, more efficient, and widely accessible CBDC experience.
Notably, Yes Bank was among the initial eight banks participating in the retail digital rupee pilot project, which commenced in December. This pilot project involved 5,000 participating merchants, served 50,000 CBDC users, and successfully executed a staggering 800,000 transactions valued at $134 million by February. Additionally, a separate wholesale digital rupee pilot was initiated in November.
Furthermore, it’s worth mentioning that the digital rupee has already gained acceptance at select Reliance Retail stores in India. This achievement was made possible through a QR code-based program that commenced in February, in collaboration with ICICI Bank, Kotak Mahindra Bank, and Innoviti Technologies.
Recently, in a report by Todayq News on May 11, 2023, substantial progress in digital currency adoption was reported, with banks like HDFC and ICICI expanding their digital rupee offerings. HDFC had launched a Digital Rupee app, while ICICI had partnered with Pine Labs for digital rupee payments. The digital rupee pilot program, initiated in late 2022, involved nine banks, including the State Bank of India, with over 15.8 million digital rupees in circulation.