Digital currency pilot gains pace; SBI, HDFC Bank step up campaigns

The Central Bank Digital Currency (CBDC) pilot in India, which is currently in its second phase, is gaining traction as banks step up their efforts to onboard customers

The Central Bank Digital Currency (CBDC) pilot in India, which is currently in its second phase, is gaining traction as banks step up their efforts to onboard customers. Banks are expanding their reach to certain customers in cities like Hyderabad, Indore, Kochi, Lucknow, Patna, Shimla, Goa, Guwahati, and Tier-II locations like Varanasi after serving major cities like Mumbai, New Delhi, Bengaluru, Bhubaneshwar, and Chandigarh. The goal of this expansion is to entice more users to sign up for the pilot.

Over One Million Users and 2,62,000 Merchants, Impressive Response
With more than one million users and 2,62,000 merchants already taking part, the CBDC pilot for retail transactions using e-Re has attracted remarkable interest.
By the end of the year, banks must be ready to handle one million daily CBDC transactions, according to the Reserve Bank of India (RBI), underscoring the growing significance of digital currency in the Indian financial system.

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UPI/QR Code Interoperability to Increase Retail CBDC Usage
The CBDC pilot’s integration of e-Re with the Unified Payments Interface (UPI) and QR code is a significant development.
The use of CBDC in retail is anticipated to flourish greatly as a result of this integration.
Interoperability will be encouraged and e-Re transactions will increase thanks to the UPI network’s capability of enabling e-Re usage through QR codes.

Top Banks Are Recruiting Customers Actively
Leading financial institutions are actively encouraging customers to sign up for the CBDC pilot, including State Bank of India (SBI) and HDFC Bank.
Both banks have noticed a significant amount of interest from retailers and business owners in urban markets.
More than 1 lakh customers and 1.7 lakh business owners have already signed up with HDFC Bank, which also provides a UPI QR code that works with the virtual currency.

The banks ICICI and Axis are Taking Part in the CBDC Project
Additionally actively taking part in the pilot are ICICI Bank and Axis Bank. While Axis Bank invites interested customers to notify them on their portal for potential connection, ICICI Bank is reaching out to selected customers via emails and text messages.