The State Bank of India (SBI) has taken a significant step in promoting the adoption of the digital rupee by introducing interoperability with the Unified Payments Gateway (UPI). Through the ‘eRupee by SBI’ application, users of the SBI Central Bank Digital Currency (CBDC) can now scan and make payments using UPI QR codes, including those from merchants. This integration is expected to revolutionize digital payments in India and facilitate the transition to a more cashless economy.
SBI’s move aims to bridge the gap between CBDC and the widely used UPI platform, paving the way for a promising future for CBDC integration. IDFC First Bank has also announced the integration of UPI QR codes with its CBDC, further enhancing CBDC adoption across the country. Both SBI and IDFC First Bank were early participants in the Reserve Bank of India’s retail digital e-rupee project initiated in December 2022.