YES BANK today announced participation in the first pilot of the Digital Rupee (e₹), a new form of currency launched by the Reserve Bank of India (RBI). Digital Rupee (e₹) is a legal tender, similar to the sovereign paper currency, and is issued in digital form by the RBI.
The Bank today rolled out the RBI’s Central Bank Digital Currency (CBDC) for its closed user group (CUG), comprising its retail customers and merchants. YES BANK is one amongst the four banks identified by the RBI under the first pilot of its digital currency (e₹) for the retail market.
The project is in alignment with RBIs focus on creating a digitally powered economy, with an aim to reduce dependence on cash by introducing a digital version of cash with similar features. This will also help reduce the expenditure incurred by RBI on printing and maintenance of currency, while help to avoid counterfeiting.
Commenting on the development, Prashant Kumar, MD & CEO, YES BANK said, “At YES BANK, it has been our constant endeavour to provide customers with a differentiated banking experience by leveraging our best-in-class technology infrastructure, as well as our inherent capability to innovate. The RBI’s decision to introduce its Digital Currency is certainly a momentous one, that bodes well with their overall objective of building a digitally powered economy. It is indeed a matter of immense pride for us to have been selected by the RBI for participating in both strategic CBDC pilot projects (Wholesale and Retail), and we believe that the ecosystem of regulator, banks and fintechs will continue to foster more innovation on the back of CBDC, to support the Government and RBI’s vision of Digital India..
During the pilot phase, access to the YES BANK Digital Rupee app will be given to select retail customers of YES BANK who will be a part of the CUG. This will provide customers a glimpse of the future of digital currency in India. Customers can transact in Digital Rupee using a convenient and safe digital wallet offered by YES BANK. The Digital Rupee wallet will be like a physical wallet, but in digital form that will be available for download on smartphones with an Android OS. Customers can use the Digital Rupee wallet to make payments to merchants and individuals, who are part of the CUG pilot. Payments to merchants can be made through a unique QR code displayed at respective merchant touchpoints. To participate in this digital payment journey and activate their wallet, the select few customers will have to download the YES BANK Digital Rupee wallet using the web link that will be provided by the Bank.