HDFC Bank launches UPI QR code interoperable with Digital Rupee

“The initiative is an extension to the CBDC pilot launched by the Reserve Bank of India (RBI), last year. CBDC or Digital Rupee is a tokenised digital version of the Indian Rupee, issued by the RBI as a Central Bank Digital Currency,” HDFC Bank said in a statement.

By leveraging the QR code, basic QR payment acceptance terminals will now be able to support the Scan & Pay feature from various factors and payment options. This advancement provides consumers with the convenience of transacting money available in their CBDC wallet across the UPI QR code, eliminating the need to scan different QR codes at the same merchant.

For merchants, this integration means they only need to display a single QR code at their storefront or through the acquiring bank's mobile application, without the need to change their existing QR codes.

Parag Rao, Country Head - Payments, Consumer Finance, Technology & Digital Banking at HDFC Bank, expressed his enthusiasm about the launch. He stated, "Our digital banking solutions are among the most advanced and secure in the country. The QR interoperability of CBDC with the widely popular UPI system is a forward-looking initiative that will significantly enhance its usage."

To transact in digital currency, HDFC Bank said that customers can utilise the 'Digital Rupee' app, which is currently available for Android 10+ users and will soon be launched on iOS.

Reserve Bank of India (RBI) Deputy Governor Rabi Sankar said on Tuesday the CBDC has reached 1.3 million registered users, of which 0.3 million are merchants.

Currently, HDFC Bank facilitates Digital Rupee payments in various cities across India, including Mumbai, Delhi, Chandigarh, Bhubaneshwar, Bengaluru, Ahmedabad, Guwahati, Gangtok, Hyderabad, Indore, Bhopal, Lucknow, Patna, Kochi, Goa, Shimla, Jaipur, Chennai, Kolkata, Ranchi, Pune, Nagpur, Varanasi, Vishakhapatnam, Pondicherry, and Vijayawada.