IDFC First Bank boosts digital rupee adoption with UPI QR code integration

Private banking company IDFC First Bank, on Monday, said that it has integrated Central Bank Digital Currency (CBDC) app with UPI QR codes. The move is aimed at encouraging the use of the digital rupee and make it more accessible.

The new feature simplifies the process for merchants to accept payments made with the digital rupee. This development allows individuals to easily use digital rupees for payments through existing UPI QR codes at various merchant outlets.

Digital rupee adoption

"Being one of the banks that are a part of RBI's CBDC initiative for retail users, this new feature will simplify payment acceptance for merchants, enabling them to seamlessly accept payments made with digital rupees," IDFC First Bank said in a statement.

"Individuals can effortlessly make payments using digital rupees through existing UPI QR codes at various merchants," it added.

According to IDFC First Bank's Executive Director, Madhivanan Balakrishnan, this UPI interoperability feature is expected to greatly increase the adoption of CBDC throughout the country.

The digital rupee, introduced by the Reserve Bank of India last year, represents a digital form of legal tender issued by the central bank. It possesses essential qualities like physical currency, including trustworthiness, security, and the capability for instant settlement in the digital realm.

(With PTI inputs)