HDFC Bank becomes first to offer interoperability between CBDC and UPI

[Abhishek012]

HDFC Bank becomes first to offer interoperability between CBDC and UPI​

Private lender had more than 100,000 customers and 170,000 merchants under pilot programme

HDFC Bank, the country’s largest private sector lender, has become the first commercial bank to implement interoperability between United Payment Interface (UPI) and Central Bank Digital Currency, starting Thursday.

The move comes days after Reserve Bank of India (RBI) deputy governor T Rabi Sankar said such interoperability will be implemented in July.

“HDFC Bank today announced the launch of UPI QR code interoperable with India's sovereign digital currency, Central Bank Digital Currency (CBDC). With this, HDFC Bank becomes one of the first banks in the country to complete the integration process,” said the lender in a statement.

It had more than 100,000 customers and 170,000 merchants under the CBDC pilot programme.

HDFC Bank customers can transact money available in their CBDC wallet across UPI QR code and there will be no need to scan different QR codes at the same merchant.

“The interoperable UPI QR code allows HDFC Bank merchants who have been onboarded on the bank’s CBDC platform, to accept payments from their customers in the form of Digital Rupee currency, boosting usage of CBDC in day-to-day transactions,” said HDFC Bank.

HDFC Bank will facilitate payments in Digital Rupee in Mumbai, Delhi, Chandigarh, Bhubaneswar, Bengaluru, Ahmedabad, Guwahati, Gangtok and other cities.Merchants only need to display one QR code at the storefront or through the acquiring bank’s mobile application. There is no need for merchants to change their existing QR codes.

“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,” said Parag Rao, country head–payments, consumer finance, technology & digital banking, HDFC Bank.

RBI has started a pilot on CDBC on the wholesale side on November 1, 2022. Retail testing started on December 1. RBI aims to increase the daily transaction volume of CDBC retail to 1 million by the end of 2023, as compared to 5,000-10,000 now.

UPI, the most popular digital payment mode in the country, has 31 crore transactions daily.

 

[D₹V]

Great news but I haven't tried it yet.

 

[Abhishek012]

Great news but I haven't tried it yet.

Yup, anyone use HDFC CBDC then try and tell me, is it working on all UPI QR codes or Merchant UPI QR codes ?

Also share whether HDFC CBDC create its own UPI VPA or merge CBDC QR with UPI QR similar to Bharat QR.

 

[SSV]

HDFC Bank becomes first to offer interoperability between CBDC and UPI​

Private lender had more than 100,000 customers and 170,000 merchants under pilot programme

HDFC Bank, the country’s largest private sector lender, has become the first commercial bank to implement interoperability between United Payment Interface (UPI) and Central Bank Digital Currency, starting Thursday.

The move comes days after Reserve Bank of India (RBI) deputy governor T Rabi Sankar said such interoperability will be implemented in July.

“HDFC Bank today announced the launch of UPI QR code interoperable with India's sovereign digital currency, Central Bank Digital Currency (CBDC). With this, HDFC Bank becomes one of the first banks in the country to complete the integration process,” said the lender in a statement.

It had more than 100,000 customers and 170,000 merchants under the CBDC pilot programme.

HDFC Bank customers can transact money available in their CBDC wallet across UPI QR code and there will be no need to scan different QR codes at the same merchant.

“The interoperable UPI QR code allows HDFC Bank merchants who have been onboarded on the bank’s CBDC platform, to accept payments from their customers in the form of Digital Rupee currency, boosting usage of CBDC in day-to-day transactions,” said HDFC Bank.

HDFC Bank will facilitate payments in Digital Rupee in Mumbai, Delhi, Chandigarh, Bhubaneswar, Bengaluru, Ahmedabad, Guwahati, Gangtok and other cities.Merchants only need to display one QR code at the storefront or through the acquiring bank’s mobile application. There is no need for merchants to change their existing QR codes.

“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,” said Parag Rao, country head–payments, consumer finance, technology & digital banking, HDFC Bank.

RBI has started a pilot on CDBC on the wholesale side on November 1, 2022. Retail testing started on December 1. RBI aims to increase the daily transaction volume of CDBC retail to 1 million by the end of 2023, as compared to 5,000-10,000 now.

UPI, the most popular digital payment mode in the country, has 31 crore transactions daily.

Slowly but steadily and surely CBDC making inroads into the mainstream... Space to watch for sure...

 

[pratikjain4]

Lekin isme mera kya faida ?
No , seriously asking. Putting money from HDFC Bank to CBDC and then sending that digital money to the shopkeeper using UPI has WHAT benefits ??

 

[Abhishek012]

Lekin isme mera kya faida ?
No , seriously asking. Putting money from HDFC Bank to CBDC and then sending that digital money to the shopkeeper using UPI has WHAT benefits ??

First of all this is just the beginning. We don't know what will happen in future but

You will get cashback/discount offers through CBDC payment. This is another mode of payment.

CBDC don't charge MDR fees. In future, UPI will charge MDR from Merchants but CBDC will remain free.

Benefit for small merchants and Big merchants will also save crore rupees from MDR and they will re-invest on cashback and discount offers etc.

The second objective is to reduce dependence on foreign card networks

Then it is going to have a huge role in international trade. Look at Chinese e-Yuan/e-Renminbi. China is using its digital currency on international trade.

 

[KT Shanmuganathan]

How about RuPay credit card on Swiping machine and UPI payments ?

Will they bring CBDC in RuPay Credit card too.

 

[Abhishek012]

How about RuPay credit card on Swiping machine and UPI payments ?

Will they bring CBDC in RuPay Credit card too.

Chinese e-Yuan/e-Renminbi already linked with China's UnionPay Card.

I would also like to see RuPay Platinum debit card linked to Digital e-Rupee.

However, a CBDC is a savings balance and not a credit balance. Hence, only RuPay debit cards will be linked to CBDC.

 

[VISHESH_BANSAL]

Chinese e-Yuan/e-Renminbi already linked with China's UnionPay Card.

I would also like to see RuPay Platinum debit card linked to Digital e-Rupee.

However, a CBDC is a savings balance and not a credit balance. Hence, only RuPay debit cards will be linked to CBDC.

I have acces to HDFC digital E rupee.
Testing ke liye karna hai ?

UPI QR SCAN from E Rupee App
And then
Then E-Rupee QR Scan From Any UPI App ?

 

[Abhishek012]

I have acces to HDFC digital E rupee.
Testing ke liye karna hai ?

UPI QR SCAN from E Rupee App
And then
Then E-Rupee QR Scan From Any UPI App ?

UPI QR SCAN from HDFC E-Rupee App and pay.

Dekho hota hai ya nahi.

Bank UPI QR and merchant UPI QR dono try kar lena.

 

[VISHESH_BANSAL]

UPI QR SCAN from HDFC E-Rupee App and pay.

Dekho hota hai ya nahi.

Bank UPI QR and merchant UPI QR dono try kar lena.

Not Working.
On Scanning Both Bank and Merchant UPI , error is poping up:'

"This is user is not registered in eRupee"

This is facility is not enabled yet and HDFC is claiming First ever Bank.

ICICI aake HDFC ko dhappa karke hosh m laayega aur bolega , ek baar phir se bol first ever bank.

 

[irohitpragya]

Lekin isme mera kya faida ?
No , seriously asking. Putting money from HDFC Bank to CBDC and then sending that digital money to the shopkeeper using UPI has WHAT benefits ??

bhai faida abhi nahi to baad jarur hoga.

On a serious note, let's assume someday upi server goes down you have no other option to pay your milkman, newspaperman, or samosa expenses. and you can't pay your daily expense with cards.

that's why RBI brings this as an alternative to UPI. I know someone will differ from my point that UPI is king. I AGREE but use the digital rupee as an alternative to UPI. god knows if someday we will need this.

 

[Abhishek012]

bhai faida abhi nahi to baad jarur hoga.

On a serious note, let's assume someday upi server goes down you have no other option to pay your milkman, newspaperman, or samosa expenses. and you can't pay your daily expense with cards.

that's why RBI brings this as an alternative to UPI. I know someone will differ from my point that UPI is king. I AGREE but use the digital rupee as an alternative to UPI. god knows if someday we will need this.

I want another UPI network in India.

Mai khud tweet kar chuka hu isko lekar.

 

[jayvirrathi]

how to get access for digital currency for hdfc erupee ?

 

[akshayhs]

Not Working.
On Scanning Both Bank and Merchant UPI , error is poping up:'

"This is user is not registered in eRupee"

This is facility is not enabled yet and HDFC is claiming First ever Bank.

ICICI aake HDFC ko dhappa karke hosh m laayega aur bolega , ek baar phir se bol first ever bank.

Mera account mai sab kuch chal rha hai. Lekin doh din pehle phone gira aur ab cameras nai chal rha hai 🙃😐