Digital Currency Transaction in PNB: PNB has allowed CBDC UPI interoperability through PNB Digital Rupee App.
New Delhi: Punjab National Bank (PNB) has implemented the facility of digital currency (eRupee) payment through UPI for its customers. The bank has announced the inclusion of India’s Central Bank Digital Currency (CBDC) ie, with Unified Payments Interface (UPI) interoperability in its mobile application Digital Rupee.
PNB customers can now use the PNB Digital Rupee app to make payments to their vendors using a UPI QR code scan, or use it to complete transactions at merchant outlets. Users of the PNB Digital Rupee application can use their CBDC wallet to make purchases on UPI QR at merchants. The app with this new feature is already live for Android users on Play Store and it will soon go live for iOS users as well.
What is Central Bank Digital Currency (CBDC) or E-Rupee?
The Reserve Bank of India issues Digital Rupee or E-Rupee as legal money, which is similar to sovereign paper currency. E-Rupee in digital mode accelerates physical transactions with convenience and safety. It can be used to transact or hold value digitally in the same way as real cash notes.
Features of CBDC i.e. digital currency
- CBDC i.e. E-Rupee is sovereign currency issued by central banks in accordance with their monetary policy.
- It appears as a liability on the balance sheet of the central bank.
- It can be accepted by all citizens, enterprises and government agencies as a means of payment, legal tender and a secure store of value.
- Commercial banks can freely exchange it against money and cash.
- It is not necessary for the holder of digital currency or e-Rupee to have a bank account.
- The use of digital currency or CBDC is expected to reduce the cost of money issuance and transactions.
These banks have also launched CBDC or digital currency
HDFC Bank, Canara Bank, Axis Bank and Yes Bank, Bank of Baroda and SBI have launched UPI interoperability.
