Mumbai-based YES Bank has gone live with Unified Payments Interface (UPI) interoperability on the Reserve Bank of India (RBI) central bank digital currency (CBDC) app, “redefining the customer’s digital transaction journey”.
The move by the commercial bank means that users will now be able to scan any UPI QR code through the YES Bank ‘Digital Rupee’ app to transact.
The RBI launched the first pilot for the retail digital Rupee on 1 December 2022.
YES Bank was one of the initial four banks that participated in the pilot phase, alongside State Bank of India, ICICI Bank and IDFC First Bank.
India’s digital currency system is built on a QR code mechanism for conducting transactions.
According to YES Bank, by integrating CBDC with UPI QR codes, the digital Rupee will gain “a broader platform”.
“The integration of UPI interoperability in our CBDC app is testament to our effort at redefining the customer’s digital transaction journey,” Ajay Rajan, country head, digital and transaction banking at YES Bank 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.”
Rajan added: “This transformational enabler will facilitate a quantum leap in CBDC usage, driven by the enhanced convenience and accessibility.
“Our aim is to ensure that the [digital Rupee] transcends its role as just another type of currency to become a seamless transactional experience for every user.”
The UPI system’s merchant base currently numbers 150 million.