IDFC Bank to launch Digital E-Rupee (CBDC Payments): See all Details!

Central Bank Digital Currency (CBDC) Payments on IDFC Bank are soon going to roll out. IDFC Bank has partnered with ToneTag, a company that enables contactless payments using sound.

by Vrushali.S Updated: 01 Feb, 2023, 15:44 IST
1 1785

Central Bank Digital Currency (CBDC) Payments on IDFC Bank are soon going to rollout. IDFC Bank has partnered with Tonetag, a company that enables contactless payments using sound for the same. The news has come after RBI last year shortlisted select banks such as SBI, IDFC, HDFC & ICICI to work on Digital Rupee(₹) or E-₹. If IDFC bank successfully manages to launch CBDC Payments, India would become one of the few countries in the world that supports CBDC (digital currency) payments. More details are below.

IDFC Bank to launch Digital E-Rupee (CBDC Payments): See all Details!


Summary of the news:

  • Last year, RBI selected banks like the State Bank of India, the ICICI Bank, the Yes Bank and the IDFC First Bank to work on bringing digital currency (E-Rupee) in the first phase

  • IDFC Bank has now partnered with Tonetag, a company backed by Amazon and Mastercard for launching CBDC Payments

  • Central Bank Digital Currency (CBDC) Payments on IDFC Bank are soon going to roll out soon

  • The COO of the IDFC Bank, says, “Digitisation of cash is one more step in making transactions easier for people”

  • Participating banks will provide a digital wallet to users and users can transact their E-rupee (E-₹) currency between person-to-person (P2P) or person-to-merchants(P2M) by using their stored digital currency.

  • This digital currency or E-₹ will be available in the same denominations as that of physical cash.

  • However, unlike the physical currency, users cannot earn any interest on their E-currency. It can be transformed in form of a deposit in the bank.

What are CBDC Payments (Digital Currency)?

CBDC Payments or Central Bank Digital Currency Payments are payments that can be done via a tokenized digital version of the Indian currency (E-rupee/E-R/E-₹) issued by the Reserve Bank of India (RBI). In simple terms, CBDC payments are done using digital currency. This digital currency as the name suggests is made available to the consumer in a completely electronic medium which is why, it is also said that digital currency (E-rupee) payments are faster than traditional UPI, and RTGS payment methods.


Digital Currency (CBDC) Payments with IDFC Bank are to be launched soon in India!

Last year, the RBI pilot launched CBDC Payments or E-rupee (₹) payments for retailers in India. IDFC Bank has recently announced that the private sector bank will be launching CBDC Payments soon in a tie-up with Amazon and Mastercard-backed venture, ToneTag, which is a Bangalore-based company that enables sound-wave-based merchant payment solutions.

What this CBDC Payments with IDFC Bank mean for customers is nicely put by the COO of the IDFC Bank, who says, “Digitisation of cash is one more step in making transactions easier for people”


Also read: Budget 2023 Live Updates & Top Highlights



How you’d be able to use the digital currency (E-₹) with IDFC Bank?

As per the RBI, you’d be enabled with a digital currency wallet wherein you can transact your E-rupee (E-₹) currency between person-to-person (P2P) or person-to-merchants(P2M) by using your stored digital currency. Participating banks will provide digital wallets to users and the same can be stored on mobile phones.

This digital currency or E-₹ will be available in the same denominations as that of physical cash. However, unlike the physical currency, users cannot earn any interest on their E-currency. Though it would resemble all the features of physical currency such as safety, trust, and settlement facility.

Kumar Abhishek, founder & CEO ToneTag, said, “We are glad to collaborate with IDFC First Bank and participate in the first phase of the CBDC retail pilot. In this pilot, ToneTag will provide solutions through which merchants will be enabled to accept the digital currency. With this launch, India becomes one of the only few countries Globally to take this leap of digitalizing cash and reap its great potential to reduce counterparty credit and liquidity concerns, as well as increase the efficiency of payments and securities settlement. This indeed is going to be India’s decade and many kudos to RBI."


Review Expert
Vrushali Sawant is an experienced content writer with a love for knowledge & extensive research. She writes product recommendations & reviews, buying guides, trending news & offers. When not working, you'd find her reading about the cosmos & universe.
1 Comment  |  
2 Dimers
  • Sort By
Talk-Of-The-Town Talk-Of-The-Town
Link Copied
Nahi chahiye, thank you smile
replyuser
Click here to reply
Reply