Correct Answer :   SBI

The State Bank of India announced in a release on Monday (4th September 2023), “This feature, accessible through the 'eRupee by SBI' application, will empower SBI CBDC users to scan any merchant UPI QR code for transactions,” the bank said in the release.”

Reserve Bank of India’s (RBI’s) Central Bank Digital Currency (CBDC) pilot project, multiple Indian banks have announced the introduction of Unified Payments Interface (UPI) interoperability feature on the Digital Rupee application. This means, Digital Rupee app users can scan any QR code to make payments for groceries and daily expenses.


The CBDC push :

State Bank of India (SBI), Kotak Mahindra Bank, Yes Bank, Axis Bank. HDFC Bank, Canara Bank, among others are live with the inclusion of UPI interoperability.

The State Bank of India announced in a release on Monday, “This feature, accessible through the 'eRupee by SBI' application, will empower SBI CBDC users to scan any merchant UPI QR code for transactions,” the bank said in the release.”

Will this improve CBDC adoption?

This development is said to increase the adoption of RBI’s CBDC, as it would now be able to depend on the distribution systems built by the leading Indian banks.

“Bank feels that this integration will be a game changer for the digital currency ecosystem. The move is the outcome of our unwavering commitment to pushing the boundaries of digital innovation to accelerate the transition to a more cashless economy. SBI remains dedicated to providing secure, efficient, and user-friendly solutions that reshape conducting transactions,” SBI highlighted in its release.


Will merchants have to install new QR codes?

It is worth noting that as per the announcements made by the Indian banks, merchants would not be required to replace their current QR codes. They would only need to display a single QR code on their storefront or via the banking mobile application which would accept CBDC payments as well. This means, the existing QR code will be interoperable, allowing a simple QR payment acceptance terminal. It will accommodate the Scan & Pay feature through multiple payment options.

Moreover, the eligible banks' digital rupee customers can transact using the funds available in their Digital Rupee (CBDC) wallet by scanning the UPI QR code.


RBI’s CBDC :

The RBI launched the CBDC pilot programme in 2022. The Indian CBDC, which is backed by the RBI, is also known as Digital Rupee. It represents a tokenised digital version of the currency, i.e. Indian Rupee which is issued and regulated by the RBI..

Source : Business Today