Union Bank of India Initiates Direct Crediting of Employee Benefits to CBDC Wallets, Boosting Digital Rupee Usage

4 Jan 2024 , 03:33 PM

Union Bank of India plans to credit various employee benefit claim amounts directly to CBDC (Central Bank Digital Currency) Wallet, promoting the use of Digital Rupee.

CBDC is a digital form of paper currency, backed by the RBI, known as Digital Rupee.

The bank is implementing necessary system changes to facilitate the direct crediting of employee benefits to CBDC wallets over time.

Employees can use the amount credited in their CBDC wallet for transactions or redeem it to their respective accounts.

RBI launched the pilot project for the retail e-rupee on December 1, 2022, aiming to learn more about public usage.

Commercial banks, including UBI, are offering incentives, such as cash-backs, to promote the use of retail CBDC and attract new users.

Employees without CBDC wallets or facing technical issues will receive the newspaper allowance credit in their salary drawing accounts.

Banks are advised to encourage staff to transact using CBDC wallets and ensure 100% staff registrations on the digital rupee app.

RBI achieved its target of surpassing one million daily transactions in the retail segment of CBDC by the end of 2023, as mentioned in RBI Governor Shaktikanta Das’s end-of-the-year letter to RBI staff on December 29.

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