CRED Launches Beta E-Rupee Wallet

January 29, 2025

Recently, CRED became the first fintech company to launch a beta version of its e-rupee wallet, enabling transactions using India’s central bank digital currency (CBDC). This initiative follows the Reserve Bank of India’s (RBI) proposal to broaden access to CBDC-Retail, allowing non-bank payment system operators to facilitate digital currency transactions. The e-rupee wallet aims to enhance financial inclusion and streamline digital payments in India.

About Central Bank Digital Currency (CBDC)

CBDC is a digital form of legal tender issued by a country’s central bank.
It holds the same value as physical currency. Unlike traditional bank deposits, CBDC is a liability on the central bank’s balance sheet.
This means individuals do not need a bank account to possess digital currency.
CBDCs can be exchanged for physical cash and facilitate seamless transactions.

Features of CRED’s E-Rupee Wallet

CRED’s e-rupee wallet allows users to transact up to ₹10,000 per transfer, with a daily limit of ₹50,000.
The wallet supports zero-cost merchant transactions.
Users can load their wallets via UPI and send or receive money to other CBDC wallets.
Future updates will introduce programmable payments and PIN-less transactions for amounts below ₹500.

Partnerships with Financial Institutions

Yes Bank acts as the sponsor bank for CRED’s e-rupee wallet, facilitating the issuance of CBDC tokens from the RBI. The collaboration aims to ensure secure and efficient integration of the e-rupee wallet. Other fintech giants like PhonePe, Google Pay, and AmazonPay are also looking to partner with the RBI to expand the e-rupee’s reach.

Regulatory Context and Global Landscape

The launch of the e-rupee wallet occurs amidst a contrasting stance in the United States, where President Donald Trump banned the establishment of CBDCs.
The U.S. order prohibits any actions to develop or promote CBDCs, reflecting a cautious approach to digital currency.
As India embraces CBDC, it positions itself as a leader in digital finance.

Potential Impact on Financial Transactions

The introduction of CBDC is expected to revolutionise financial transactions in India. It enhances transaction efficiency and reduces costs associated with traditional banking. The RBI anticipates that CBDC will boost financial inclusion and provide users with more choices in digital payments.

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