Bangalore, August 30, 2023: YES BANK today, announced that it has gone live with Unified Payments Interface (UPI) Interoperability on the Reserve Bank of India (RBI) Central Bank Digital Currency (CBDC) app.
With this move, users will now be able to scan any UPI QR code through the YES BANK Digital Rupee app and undertake transactions in a seamless manner. This move is set to significantly expand the reach of the Digital Rupee (e₹) and underscores the Bank’s commitment towards propelling digital innovations, and providing a wide range of transactional options for users across the nation.
The RBI introduced the e₹ in Q3 FY23, marking a major milestone in India’s journey towards establishing a comprehensive digital financial landscape, wherein YES BANK was one among the initial four banks in the pilot phase. This initiative introduced a digital currency system 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 very important. By integrating CBDC with UPI QR codes, the e₹ gains a broader platform, with the goal of becoming a staple in daily transactions. This strategic move enhances not only the strengths of the e₹ but also seamlessly integrates with the widely-adopted UPI system, presently having an overall merchant base of 150 million. This integration is designed to offer users exceptional flexibility, ensuring a smooth and seamless transactional experience without the need for switching between multiple digital platforms.
Speaking about the initiative, Mr. Ajay Rajan, Country Head – Digital & Transaction Banking, YES BANK, said, “The integration of UPI interoperability in our CBDC app is testament to our effort at redefining the customer’s digital transaction journey. 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. 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 e₹ transcends its role as just another type of currency to become a seamless transactional experience for every user.”
The introduction of interoperability to CBDC marks a significant leap for all banks operating in India. As these boundaries expand and converge, a profound transformation is on the horizon for the very foundation of digital banking and transactions within the nation.