HDFC Bank enables CBDC-compatible UPI QR code for seamless payments

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HDFC Bank On Thursday, it launched a UPI QR token that is interoperable with a central bank digital currency (CBDC).

India’s largest private sector bank said in a statement that the interoperable UPI QR token will allow HDFC Bank’s merchants, which are onboarded to the bank’s CBDC platform, to accept payments from their customers in the form of the digital rupee currency.

CBDC, or digital rupee, is a digital token version of the Indian rupee issued by the Reserve Bank of India.

The interoperable QR code will enable the basic QR payment acceptance terminal to support scanning and payment feature from various factors and payment options. Provides the freedom to accept payments using the same QR from different operators.

The interoperability of UPI QR tokens with CBDCs will enable customers to transact funds available in their CBDC wallet via UPI QR tokens. Moreover, there will be no need to scan different QR codes at the same merchant.

In the case of merchants, they only need to display a single QR code in the storefront or through the mobile application of the acquiring bank. Moreover, they do not need to change their existing QR codes.

The bank said that it has included more than 1 lakh customers and 1.7 merchants under the CBDC pilot programme.