Fintech platforms MobiKwik and CRED have become the first non-banking entities to offer the central bank digital currency (CBDC) – e-Rupee (e₹) wallet – for users.
The product was developed in alliance with the Reserve Bank of India (RBI) and Yes Bank, which will act as the sponsor bank for CBDC issuance.
CBDCs are digital currencies issued by central banks.
The e₹ wallet functions like physical cash, and users can store e₹ in their wallets to send, receive, and make payments.
It support transactions up to Rs10,000 per transfer, with a daily limit of Rs 50,000. Available currency denominations include 50 paise, Rs1, Rs2, Rs5, Rs10, Rs20, Rs50, Rs100, Rs200, and Rs500.
MobiKwik’s existing full KYC user base, which amounts to 167 million, can now open an e₹ wallet and load funds from their bank account, while new users must complete video KYC to access this service.
It has described the rollout as a ‘full-scale production version’ for its customers.
CRED has announced that future updates will include features such as programmable merchant payments, CRED Pay integration, and PIN-less transactions for amounts below Rs500, reported CNBC
While the CRED e₹ wallet is currently in beta, it is expected to become available to a broader user base soon, reported Business Standard.
CRED founder Kunal Shah said: “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.”
MobiKwik co-founder and MD Bipin Preet Singh added: “We expect that CBDC will make the Indian rupee digital and further expand the digital economy. e₹ transfers can be made to anyone with an e₹ wallet or UPI ID. Our goal is to drive the adoption of e₹ in India and move towards a less cash economy.”
This move follows a decision by the RBI in April 2024 to allow payment firms, in addition to banks, to offer e-rupee transactions, reported Reuters.
The central bank had initiated a pilot for the e-rupee in December 2022, as a digital alternative to physical currency.
Notably, payment platforms such as Google Pay, Amazon Pay, and PhonePe have expressed interest in joining India’s digital currency project, reported Reuters.
“India’s MobiKwik and Cred launch e-Rupee wallets ” was originally created and published by Electronic Payments International, a GlobalData owned brand.
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