YES BANK today announced its participation in the first trial of the Reserve Bank of India’s Digital Rupee (e₹), a new type of money (RBI). The Reserve Bank of India (RBI) issues digital rupees (e₹) as legal money, comparable to sovereign paper currency.
The bank launched the RBI’s Central Bank Digital Currency (CBDC) today for its closed user group (CUG), which includes retail consumers and businesses. YES BANK is one of four banks chosen by the RBI to participate in the first pilot of its digital currency (e₹) for the retail sector.
The project aligns with the RBI’s focus on developing a digitally powered economy, with the goal of reducing reliance on cash by introducing a digital version of cash with similar features. This would also assist to cut the RBI’s expense on currency printing and upkeep, while also reducing counterfeiting.
Commenting on the development, Prashant Kumar, MD & CEO, YES BANK said, “At YES BANK, it has been our constant endeavour to provide customers with a differentiated banking experience by leveraging our best-in-class technology infrastructure, as well as our inherent capability to innovate. The RBI’s decision to introduce its Digital Currency is certainly a momentous one, that bodes well with their overall objective of building a digitally powered economy. It is indeed a matter of immense pride for us to have been selected by the RBI for participating in both strategic CBDC pilot projects (Wholesale and Retail), and we believe that the ecosystem of regulators, banks and fintechs will continue to foster more innovation on the back of CBDC, to support the Government and RBI’s vision of Digital India.
During the test phase, chosen retail customers of YES BANK who are members of the CUG will have access to the YES BANK Digital Rupee app. Customers will get a taste of the future of digital currency in India. Customers can transact in digital rupees by utilising YES BANK’s easy and secure digital wallet. The digital rupee wallet will function similarly to a physical wallet, but in digital form, and will be accessible for download on smartphones running the Android operating system. Customers can use the digital rupee wallet to pay merchants and individuals participating in the CUG pilot. Payments to merchants can be made by scanning a unique QR code displayed at each merchant touchpoint.
To take part in this digital payment journey and activate their wallet, a selected few customers will need to download the YES BANK Digital Rupee wallet via the web link provided by the bank.