HDFC Bank to offer interoperability between CBDC and UPI

HDFC Bank

HDFC Bank announced the availability of UPI QR codes compatible with India’s sovereign digital currency, Central Bank Digital Currency (CBDC). HDFC Bank is now one of the country’s first banks to finish the integration process. The interoperable UPI QR code enables HDFC Bank merchants on the bank’s CBDC network to accept payments from clients in the form of Digital Rupee currency, increasing the use of CBDC in day-to-day transactions.

The effort builds on the Reserve Bank of India’s (RBI) CBDC pilot programme, which was introduced last year. CBDC, also known as Digital Rupee, is a tokenized digital form of the Indian rupee produced by the Reserve Bank of India as a Central Bank Digital Currency.

A QR code that is interoperable allows a simple QR payment acceptance terminal to accommodate the Scan & Pay feature from a variety of factors and payment options. It allows you to take payments using the same QR code from several form factors.

Speaking on the occasion, Parag Rao, Country Head – Payments, Consumer Finance, Technology & Digital Banking, HDFC Bank said, “HDFC Bank has always been a pioneer in the application of Digital Banking initiatives, and we are committed to providing best-in-class and enhanced experience to our customers. Our digital banking solutions are one of the best and most secured in the country. CBDC is a forward-looking initiative and its QR interoperability with the already accepted and widely popular UPI is going to prove greatly beneficial to its usage.”

Customers of HDFC Bank can use the ‘Digital Rupee’ application to transact in digital currency. The software is presently available for Android Version 10+ users and will be released on iOS soon.

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HDFC Bank currently accepts Digital Rupee payments in 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.

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