IndusInd Bank to allow CNG bill payments through CBDC in Delhi-NCR

The users will also be allowed to scan any UPI QR using their digital Rupee app across all IGL stations in the region

IndusInd Bank on Friday announced that it has collaborated with Indraprastha Gas Ltd (IGL) to facilitate the acceptance of the Central Bank Digital Currency (CBDC) for payments of compressed natural gas (CNG) bills in Delhi and National Capital Region (NCR). According to the bank's regulatory filing, the customers at select IGL stations will be allowed to make payments using the e-Rupee.

The users will also be allowed to scan any UPI QR using their digital Rupee app across all regional IGL stations.

"We believe that Digital Rupee, with its blockchain technology, fortifies financial services, by offering faster, convenient and secure transactions. With the introduction of UPI interoperability, Digital Rupee is poised to become another significant platform contributing towards a 'cashless' economy," said Sumant Kathpalia, managing director and chief executive officer (CEO) at IndusInd Bank.

The Digital Rupee facility will be available on both iOS and Android platforms, offering various features such as peer-to-peer (P2P) and peer-to-merchant (P2M) payments with complete UPI QR interoperability.

"This initiative is the right step in enabling a secure, inclusive, sustainable and efficient mode of digital transaction which will further strengthen India's position in the global economy," added Kamal Kishore Chatiwal, managing director at IGL.

The Reserve Bank of India (RBI) launched the first pilot for CBDC on December 1, 2022. The e-rupee is issued in the form of a digital token that represents legal tender. It is issued in the same denominations that paper currency and coins are currently issued.

At first, eight banks were a part of the pilot project. Currently, IndusInd Bank is also a part of the project.

"As one of the pilot banks participating in RBI's CBDC initiative, IndusInd Bank believes in the value added by CBDC and aims to provide a seamless and comprehensive payment experience to its customers through the usage of digital currency," the bank said on Friday.