HDFC Bank on Thursday announced the integration of a UPI QR code that is interoperable with India's digital currency Central Bank Digital Currency (CBDC). This makes HDFC Bank one of the first banks in the country to complete the integration process.
The bank also said that it has onboarded over one lakh customers and 1.7 lakh merchants under the CBDC pilot programme.
According to the
HDFC Bank, the QR code will enable merchants on the CBDC platform to accept payments in the form of Digital Rupee currency, thereby promoting the usage of CBDC in everyday transactions.
“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.
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.
