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Cred, MobiKwik join RBI’s digital rupee project

Cred and MobiKwik have partnered with Yes Bank, which will be the sponsor bank that will issue e-rupee tokens from RBI to their respective wallets

Cred, MobiKwik join RBI’s digital rupee project
[Source photo: Chetan Jha/Press Insider]

Cred and MobiKwik have rolled out central bank digital currency (CBDC) wallets, becoming the first fintech firms to enter the Reserve Bank of India’s (RBI’s) digital rupee ecosystem.

Both Cred and MobiKwik partnered with Yes Bank, which will be the sponsor bank that will issue e-rupee tokens from the RBI to their respective wallets, the companies said.

While Cred rolled out a beta version of its e-rupee wallet to a select group of users, MobiKwik launched the full version for all Android users.

The wallets enable peer-to-peer and merchant transactions through unified payments interface (UPI)-linked interfaces.

“Our goal is to make e-rupee transactions frictionless and drive its adoption among the most creditworthy Indians,” Cred founder Kunal Shah said.

RBI had allowed only banks to offer access to the digital rupee. But last April, it decided to include non-bank payment operators, making CBDC more accessible.

To access these wallets, users must complete a video know-your-customer (KYC) process.

Wallets have transaction limits of Rs10,000 per transfer and Rs50,000 daily, with a maximum storage of Rs1 lakh.

The digital rupee functions similarly to physical cash and is backed by RBI.

Since the RBI’s pilot launch of the digital rupee in December 2022, 15 banks have started offering CBDC wallets.

Other payment platforms, including PhonePe, Amazon Pay, and Google Pay, have shown interest in joining the pilot as well.

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