- Yes Bank has added UPI compatibility to the RBI’s Digital Currency app, broadening the reach of the Digital Rupee.
- Yes Bank customers can now complete transactions by scanning any UPI QR code with the bank’s Digital Rupee app.
- Yes Bank’s Head of Digital & Transaction Banking, Ajay Rajan, intends to make electronic transactions as simple as managing cash.
Indian Yes Bank has integrated unified payments interface (UPI) support to the Reserve Bank of India’s (RBI) Central Bank Digital Currency (CBDC) app.
“This move is set to expand the reach of the Digital Rupee significantly and underscores the Bank’s commitment to driving digital innovations,” it said.
Yes Bank Aims for Seamless Digital Rupee Transactions
According to the release, users will be able to execute transactions by scanning any UPI QR code using the bank’s Digital Rupee app.
In India, UPI transactions are quite popular. According to a recent Economic Times study, over 260 million Indians have used the technology for payment. UPI transactions are made between banks.
When a user chooses to use UPI, it does not immediately transfer money like physical cash. Instead, banks transfer funds regularly through settlements.
The digital rupee, on the other hand, ensures settlement and is legal money issued by the government. The use of digital currency eliminates the need for middleman banks in transactions.
According to the Yes Bank website, digital rupee, like regular fiat currency, can be used in various ways. Users can transfer digital rupees to another person using a virtual payment address (VPA) or a registered phone number. They can also generate a set number of QR codes and send them to another person as a “collect request.”
Yes Bank expects the integration to boost its already rapid adoption in India further: “By integrating CBDC with UPI QR codes, the e₹gains a broader platform with the goal of becoming a staple in daily transactions.”
Yes Bank’s Country Head of Digital and Transaction Banking, Ajay Rajan, wants users to find their services as simple as managing actual currency. “Our aim is to ensure that the ₹e is more than just another type of currency,” Rajan stated.
In December 2022, the RBI launched the first retail trial of the digital rupee. The RBI states that the e-rupee provides “Features of physical cash like trust, safety, and settlement finality. It will earn any interest, just like physical cash.”
India’s Call for Global Crypto Regulation
The Indian government has recently advocated for international agreement on cryptocurrency rules.
Indian Prime Minister Narendra Modi has emphasized the significance of having similar laws for cryptocurrencies ahead of the next G20 Summit in Delhi, drawing a parallel to global aviation norms.
Over the past year, India has held workshops aimed at a better understanding of how cryptocurrencies work. The emphasis has switched from only examining the impact of cryptocurrency on financial stability to a broader examination of the global economy.
Modi agrees that different countries’ international regulations offer a challenge to the global economy:
“We haven’t stopped ideating on how we should move ahead. We have also come up with tangible details on the way ahead and how quickly we need to move. So, our road map is detailed and action-oriented.”
