Fintech platform Cred has launched a beta version of its e₹ wallet in partnership with the RBI. Yes Bank has acted as the first sponsor bank for the same.
This makes it the first fintech platform to implement the Central Bank Digital Currency (CBDC) of the RBI
Fintech platform Cred has launched a beta version of its e₹ wallet in partnership with the RBI. Yes Bank has acted as the first sponsor bank for the same.
This makes it the first fintech platform to implement the Central Bank Digital Currency (CBDC) of the RBI. Just to give some context, CBDC by the RBI is the legal tender in a digital form.
Now, CRED members who have been whitelisted for the beta can pay UPI-linked bank accounts. Further, they can send/receive money to other CBDC wallets. To do this, users have to first complete video KYC and create and load their e₹ wallets via UPI. Transactions of up to Rs 10,000 will be allowed by the wallet, and the daily limit for the same is Rs 50,000.
In the upcoming months, these new features will be available to all CRED users. To add to it, for transactions below Rs 500, users won’t need to enter a PIN, speeding up the payment process. This comes at a time when Google Pay, PhonePe, and Amazon Pay were also seeking entry into RBI’s digital rupee as of August 2024 as per a report by Reuters.
“With the support of RBI, we're enabling the creditworthy to shape the future of digital currency in the world's fastest-growing economy. Our goal is to make e₹ transactions frictionless and drive its adoption among the most creditworthy Indians,” said Kunal Shah, founder of CRED.
Initially, only banks were permitted to issue CBDC. However, in February 2023, the RBI selected eight banks to participate in the retail pilot project in phases. These banks include State Bank of India, ICICI Bank, Yes Bank, IDFC First Bank, Bank of Baroda, Union Bank of India, HDFC Bank, and Kotak Mahindra Bank.
However, soon after this, in April 2024, the RBI widened the scope of CBDC and allowed payment firms to issue it as well. Speaking about the same, then RBI governor Shaktikanta Das said at the MPC meeting, “It is proposed to make CBDC-Retail accessible to a broader segment of users by enabling non-bank payment system operators to offer CBDC wallets.”