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Pushing e-rupee payments using UPI infra on RBI’s agenda

July 12, 2023

Pushing e-rupee payments using UPI infra on RBI’s agenda
In what is an ambitious e-rupee payments goal, the Reserve Bank is seeking to drive daily CBDC transactions to 10 lakh from up to 10,000 by the year-end, ToI reported on July 12. This the central bank intends to do by using UPI QR codes.

The RBI had launched the e-rupee for retail transactions on a pilot basis on December 1, 2022. As of June, about 13 lakh users have downloaded the CBDC wallet and around 3 lakh merchants are accepting CBDC payments.
 
The RBI has tasked banks with promoting the CBDC by making UPI QR codes interoperable for e-rupee payments. E-rupee payments carry a twin boon the anonymity of cash as well as the convenience of digital transactions.
 
Transactions have not yet picked up primarily because of the limited number of merchants accepting CBDC.
 
Interoperability would enable any merchant accepting UPI payments to also accept CBDC, RBI deputy governor T Rabi Sankar said. This will eliminate worries about the number of merchants onboarded, he said at an Indian Banks’ Association conference.
 
As per data, 13 banks allowed to deal with CBDC had achieved partial interoperability, where QR codes can be scanned and linked to CBDC wallets if available.
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