IDFC First Bank makes digital rupee app interoperable with UPI QR codes

IDFC First Bank on Monday announced the integration of UPI QR codes with its Central Bank Digital Currency (CBDC) app aimed to enhance the adoption of digital rupee and boost its utilisation.

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 rupee, IDFC First Bank said in a statement.

Moreover, it said, individuals can effortlessly make payments using digital rupee through existing UPI QR codes at various merchants.

The UPI interoperability feature will dramatically enhance the adoption of CBDC across the country, IDFC First Bank executive director Madhivanan Balakrishnan said.

The digital rupee is an initiative by the Reserve Bank of India launched last year. This digital form of legal tender is issued by the central bank and shares the essential attributes of physical currency, such as trustworthiness, security, and transaction finality with instantaneous settlement in the digital realm.