RBI Targets 10 Lakh Daily E-Rupee Transactions, Focuses on UPI QR Code Interoperability

12 Jul 2023 , 01:15 PM

The Reserve Bank of India (RBI) has set a bold objective to significantly increase daily central bank digital currency (CBDC) transactions from up to 10,000 to 10 lakh (1 million) by the end of the year through the utilization of UPI QR codes.

Banks have been entrusted with promoting CBDC adoption by ensuring that UPI QR codes are interoperable, allowing them to accept payments made using e-rupee.

E-rupee payments offer the combination of cash-like anonymity and the convenience of digital transactions, presenting a promising alternative. However, transaction volumes have yet to surge primarily due to the limited number of merchants accepting CBDC payments.

The RBI initiated the e-rupee for retail transactions as a pilot project on December 1, 2022. By June, approximately 13 lakh users had downloaded the CBDC wallet, and around 3 lakh merchants had started accepting CBDC payments.

T Rabi Sankar, RBI Deputy Governor, emphasized the importance of interoperability in driving e-rupee adoption. He highlighted that any merchant accepting UPI payments would be capable of accepting CBDC, eliminating concerns regarding the number of onboarded merchants. Sankar made these remarks during a conference organized by the Indian Banks’ Association.

Sankar mentioned that the 13 banks authorized to handle CBDC had achieved partial interoperability, enabling QR codes to be scanned and linked to CBDC wallets when available. He further explained that efforts were underway to achieve full interoperability by the end of the month, allowing QR codes without linked CBDC accounts to redirect payments to bank accounts. The RBI also aims to encourage other banks to adopt interoperability measures.

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