Banking Made Simple: Scan UPI QR for Digital Rupee Payments

SBI joins the interoperability of UPI, simplifying digital rupee usage via QR codes. This change enhances user experience and benefits merchants by streamlining transactions.

Digital Rupee

On 4 September 2023, the State Bank of India (SBI) introduced Unified Payments Interface (UPI) interoperability on its digital rupee application. It became the 7th bank to join the list after the Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, and Yes Bank. Housing Development Finance Corporation (HDFC) Bank was the first to launch this feature. This comes under the Reserve Bank of India's (RBI) central bank digital currencies (CBDC) pilot project. This move is set to alter the landscape of digital payments in India potentially.


  • Under RBI's CBDC pilot projects, banks have now launched UPI interoperability.
  • The State Bank of India, on 4 September, became the 7th bank to allow its customers to make payments with digital rupee using a single QR code.
  • This move facilitates simpler transactions between consumers and merchants.

How can bank customers make use of this feature? 

With the integration of the CBDC, QR code, and UPI, bank customers can use any QR code to access their bank account. They can make transactions using a single QR code, compatible with UPI and digital rupee. SBI users can avail of this facility on the eRupee application.

Also Read: Central Bank Digital Currency: All you need to know!

What is Central Bank Digital Currency (CBDC)?

This form of rupee is digital, also known as 'eRupee' or CBDC, and is issued by the Reserve Bank of India. It is a legalised tender and can be interchanged with physical money. It is stored in eRupee wallets issued by banks, which can be linked to your bank account for deposits or withdrawals. It must be accepted as a mode of payment by all citizens, government agencies, and merchants. It was launched by the RBI in 2022 and continues to be regulated.

Also Read: A complete guide to the launch of the new digital rupee

How will CBDC be beneficial?

This transition promises increased convenience and an enhanced user experience, simplifying the shopping process for customers and merchants. Merchants will benefit from eliminating the need to manage separate QR codes for CBDC and UPI payments.

The bottom line

This transition marks a significant step towards fostering the use of digital rupees in commercial transactions. Customers of seven banks can seamlessly conduct transactions through their digital rupee wallets, eliminating the necessity for additional QR code setups.

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