YES Bank, on Wednesday, made live the Unified Payments Interface (UPI) Interoperability on the Reserve Bank of India’s (RBI) Central Bank Digital Currency (CBDC) app.
The bank said the users can now scan any UPI QR code through the YES Bank Digital Rupee app and make seamless transactions. It said the move will help expand the reach of the digital rupee (e₹) significantly.
Speaking about the initiative, Ajay Rajan, country head of Digital and Transaction Banking at YES Bank, in a press release, said: “The transition to an interoperable CBDC platform holds the promise of seamless, efficient, and broader transactional capabilities for YES Bank customers, across individuals and merchants, including MSMEs (Micro, Small and Medium Enterprises). This transformational enabler will facilitate a quantum leap in CBDC usage, driven by enhanced convenience and accessibility.”
RBI’s introduction of the digital rupee in the third quarter of FY23 marked a major milestone in India’s journey towards establishing a comprehensive digital financial landscape.
YES Bank was one of the initial four banks in the pilot phase. This digital currency system is built on a unique QR code mechanism for conducting transactions.
“As the realm of digital transactions evolves, the need for flexibility and universal adaptability becomes important. By integrating CBDC with UPI QR codes, the e₹ gains a broader platform, with the goal of becoming a staple in daily transactions,” the release said.
Furthermore, it said this strategic move enhances not only the strengths digital rupee but also “seamlessly integrates with the widely adopted UPI system”, with a merchant base of 150 million. The integration is designed to offer users exceptional flexibility, and seamless transactional experience without the need for switching between multiple digital platforms.
As these boundaries expand and converge, the YES Bank said, “A profound transformation is on the horizon for the very foundation of digital banking and transactions within the nation.”