Digital Rupee: SBI allows interoperability of UPI and Central Bank Digital Currency (CBDC)

The State Bank of India has announced the implementation of UPI interoperability in its Digital Rupee (eRupee) also called Central Bank Digital Currency (CBDC).


According to the SBI press release, “With this move, the bank aims to deliver unprecedented convenience and accessibility to its customers. This cutting-edge feature, accessible through the 'eRupee by SBI' application will empower SBI CBDC users to effortlessly scan any merchant UPI QR code for swift and secure transactions.”
HDFC Bank was the first bank in India to make interoperable QR codes available to its merchants and consumers, according to the HDFC Bank website. Followed by Canara Bank, Axis Bank and Yes Bank. Now SBI has joined the bandwagon.


How it works
QR Code interoperability will pave the way for frictionless transactions between customers and merchants. When accepting payments via UPI or digital wallet, shops will be able to display only one QR code. It will make it easier to use the Digital Rupee in daily transactions.

Important FAQs on CBDC, according to the SBI website.
What is a central bank digital currency (CBDC)
The Reserve Bank of India issues the "Digital Rupee" or "e-R" as legal money, comparable to sovereign paper currency. In digital mode, e-Rupee will provide physical cash features such as trust, safety, and settlement finality with atomicity (i.e. rapid settlement of transactions). e is a direct claim on the central bank. It can be used to carry out transactions or hold value digitally in the same way that actual cash notes can.

Will e Rupee replace cash, debit cards and credit cards?
No, according to the Reserve Bank of India's concept note, the goal of digital currency is to add to and develop an alternative to physical currency, not to replace it. It is intended to give people more options for handling their money.

Are there any charges/fees on using e?
No. There is no charges/fees associated with e -Rupee or e-Rupee wallets.

Is there any minimum balance required to open/ maintain e-Rupee wallet?
No. There is no minimum balance required to open/ maintain eRupee wallet.

Are there any limits applicable on e-Rupee wallets and usage?
eRupee can be used 24 hours per day, 7 days a week and 365 days a year. There are however some limitations on volume and value of transactions as per the table below

Particulars	Amount
Holding capacity for wallet (Amount)	1,00,000
Per day Load / Unload (Amount)
Per day Transfer (Inward / Outward Amount)	25,000
No. of Load / Unload (Count)	20
No of transfer (Inward / Outward Count)	20
Per transaction (pay/collect)	10,000