Axis Bank on Friday announced the introduction of UPI interoperability on its CBDC app named Axis Mobile Digital Rupee. Here is how it will help in Digital Rupee transactions.
As a part of the Reserve Bank of India’s ongoing Central Bank Digital Currency (CBDC) initiative, Axis Bank has launched a new functionality to enhance the use of Digital Rupee among its customers. Issuing a statement on Friday, 25 August, the private sector bank announced the introduction of UPI interoperability on its CBDC app named Axis Mobile Digital Rupee. With this, the bank aims to help customers use Digital Rupee for payments on UPI QR codes. The measure is poised to promote the extensive adoption of the Digital Rupee across the country, considering the reach and user-friendliness of UPI.
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How will UPI interoperability help in Digital Rupee payment?
As stated by Axis Bank, this brand-new future will enable customers to seamlessly use Digital Rupee to make payments to existing UPI QR codes of merchants.
Apart from customers, merchants will also benefit from the measure as it will help them to embrace Digital Rupee payments on their existing QR codes, eliminating the need for mandatory on-boarding.
Speaking about the same, Axis Bank Deputy MD, Rajiv Anand noted that the ground-breaking feature of UPI interoperability is targeted towards driving the extensive adoption of the Digital Rupee across the country. “The security and speed of Digital Rupee clubbed with the expansive reach and user-friendliness of UPI will bring the best of both worlds to customers and merchants,” he added.
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More about UPI interoperability
The UPI interoperability feature for the Axis Mobile Digital Rupee application will be rolled out for users in a phased manner, starting with Android. It will be available to all Digital Rupee users soon. It will continue to be available to whitelisted users in 26 pilot cities.
The Digital Rupee application of Axis Bank is available for download on both Android and iOS devices. With the use of the app, customers can load digital wallets using their linked Axis Bank saving accounts and transfer and receive/collect Digital Rupee from other on-boarded users.
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Customers can now also use the Digital Rupee to pay any CBDC or UPI on boarded merchant QRs codes.
In the last couple of weeks, many other lenders including Canara Bank and HDFC Bank have announced CBDC-UPI Interoperability for their customers. The banks have been following the lines of the RBI regulations regarding the adoption of digital currency in India. The Digital Rupee initiative by the RBI is a legal tender that offers features of physical cash such as safety, trust, and immediate settlement of transactions in digital mode.
