Kotak Mahindra Bank on Thursday announced the introduction of a UPI interoperability feature on its digital rupee (e₹) application as part of the RBI’s CBDC pilot project. With it, e₹ app users can now scan any QR code at merchants to pay for groceries and daily expenses. This feature allows customers to make payments using the existing UPI QR codes available from merchants. As of now, the feature is Live for Android users.
“The ‘e₹’ app allows users to transact without disclosing bank account information, supports simple transfers and makes bank statements uncluttered to ensure a secure and regulated interface, making the experience seamless,” said Kotak. Mahindra Bank in a statement.
Virat Diwanji, Group President & Head Consumer Bank, Kotak Mahindra Bank said: “We are proud to introduce the CBDC-UPI interoperability feature which will take us one step closer to strengthening Digital India’s vision. With the e₹ application, we want to stimulate a wider adoption of the digital rupee (e₹). The convenience, security and assurance provided by the application will support a faster transaction, giving customers and merchants the opportunity to be a part of the digital revolution.”
To date, 13 banks have become part of RBI’s pilot initiative, and users in 26 cities have access by invitation only. Once the interoperability feature stabilizes, RBI may open up Digital Rupee (e₹) to everyone in the near future. Under RBI regulations, the digital rupee is legal tender in India, and its interoperability with UPI will further bolster digital currency adoption.
