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SBI allows interoperability of UPI and CBDC
September 04, 2023
The State Bank of India has announced the implementation of UPI interoperability in its Digital Rupee (eRupee) also called Central Bank Digital Currency (CBDC).
According to the SBI press release, “With this move, the bank aims to deliver unprecedented convenience and accessibility to its customers. This cutting-edge feature, accessible through the ‘eRupee by SBI’ application will empower SBI CBDC users to effortlessly scan any merchant UPI QR code for swift and secure transactions.”
HDFC Bank was the first bank in India to make interoperable QR codes available to its merchants and consumers, according to the HDFC Bank website. Followed by Canara Bank, Axis Bank and Yes Bank. Now SBI has joined the bandwagon.
QR Code interoperability will pave the way for frictionless transactions between customers and merchants. When accepting payments via UPI or digital wallet, shops will be able to display only one QR code. It will make it easier to use the Digital Rupee in daily transactions.
The Reserve Bank of India issues the “Digital Rupee” or “e-R” as legal money, comparable to sovereign paper currency. In digital mode, e-Rupee will provide physical cash features such as trust, safety, and settlement finality with atomicity (i.e. rapid settlement of transactions). e is a direct claim on the central bank. It can be used to carry out transactions or hold value digitally in the same way that actual cash notes can.
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