According to the Yes Bank press release dated December 2, 2022, “The Bank today rolled out the RBI’s Central Bank Digital Currency (CBDC) for its closed user group (CUG), comprising its retail customers and merchants. YES BANK is one amongst the four banks identified by the RBI under the first pilot of its digital currency (e₹) for the retail market.”
YES BANK is proud to be selected by the Reserve Bank of India for the first pilot launch of India’s Central Bank Di… https://t.co/ydkEZCekof
— YES BANK (@YESBANK) 1669914348000
How does it work?
Select retail clients of YES BANK who are members of the CUG will receive a Digital Rupee app, stated the YES BANK press release. Customers can transact in Digital Rupees by using YES BANK’s easy and secure digital wallet.
How to use Yes bank Digital Rupee
The Digital Rupee wallet will function similarly to a physical wallet, but in digital form, and will be accessible for download on smartphones running the Android operating system.
According to the Yes Bank press release, “Customers can use the Digital Rupee wallet to make payments to merchants and individuals, who are part of the CUG pilot. Payments to merchants can be made through a unique QR code displayed at respective merchant touchpoints. To participate in this digital payment journey and activate their wallet, the select few customers will have to download the YES BANK Digital Rupee wallet using the web link that will be provided by the Bank.”
What is Digital Rupee?
According to the concept note, the Central Bank Digital Currency (CBDC) is the Reserve Bank of India’s official form of currency. The regulator stated that the RBI’s CBDC, also known as the Digital Rupee or e-Rupee, is interchangeable one-to-one at par with the fiat currency and is the same as a sovereign currency.
Main features of Digital Currency
· Digital currency is issued with similar features and denominations as cash
· Legal tender backed by RBI directly, hence highest level of trust
· Token based, hence instant settlement and delivers finality to the transaction
· Provides better anonymity than traditional digital money
· Carrying cash is bulky but no restrictions on holding CBDC