HDFC Bank has announce the introduction of interoperability between the Unified Payments Interface (UPI) and the central bank digital currency (CBDC). This update will take effect starting from 13th July 2023, marking HDFC Bank as one of the pioneering banks in the nation to successfully complete the integration process.
In an official statement, the HDFC bank said :
“HDFC Bank today revealed the launch of an interoperable UPI QR code compatible with India’s sovereign digital currency, the Central Bank Digital Currency (CBDC). With this development, HDFC Bank attains the distinction of being among the first banks in the country to accomplish the integration process.”
As per the CBDC pilot programme, HDFC Bank has register an impressive number of customers, surpassing one lakh with 1.7 lakh merchants.
HDFC Bank customers will have the ability to transact using the funds available in their CBDC wallet via the UPI QR code, eliminating the need to scan multiple QR codes when making payments at the same merchant.
For merchant’s side, a single QR code will be display either at the storefront or through the acquiring bank’s mobile application.
So, merchants will not be require to modify their existing QR codes.
HDFC Bank said :
“The introduction of an interoperable UPI QR code empowers HDFC Bank merchants who are onboarded on the bank’s CBDC platform to accept payments from their customers in the form of the Digital Rupee currency, thereby encouraging the usage of CBDC in day-to-day transactions,”.
HDFC Bank will facilitate Digital Rupee payments across many major cities, including Mumbai, Delhi, Chandigarh, Bhubaneshwar, Bengaluru, Ahmedabad, Guwahati, and Gangtok, among many others.
Describing the initiative as forward-looking, Parag Rao, the Country Head for Payments, Consumer Finance, Technology & Digital Banking at HDFC Bank, express his belief that the QR interoperability between CBDC and the widely popular UPI would prove to be highly advantageous for its usage.
Reserve Bank of India Deputy Governor T Rabi Sankar recently announce that the interoperability between CBDC and UPI QR codes had permit and would be implement this month.
The central bank initiated the CBDC pilot programme for wholesale transactions on 1st November, 2022, and for retail testing on 1st December.
By the end of 2023, the RBI aims to increase the daily transaction volume of CBDC retail to 1 million, compare to the current range of 5,000-10,000.
UPI, which boasts a daily transaction count of 31 crore, remains the most popular digital payment mode in India.
