Cred Launches e-Rupee Wallet for Retail Transactions in India
India's Reserve Bank of India (RBI) has partnered with fintech company Cred to launch the e-Rupee for retail users, expanding its central bank digital currency (CBDC) initiative beyond wholesale transactions. This follows pilot tests that began in late 2022.
Key Developments
- Cred introduces a digital wallet for e-Rupee transactions, initially available to select customers.
- The wallet allows linking with Unified Payments Interface (UPI) bank accounts for transaction capabilities.
- Transaction limits include Rs 10,000 per transfer, Rs 50,000 daily, and Rs 1 lakh total storage capacity.
- No fees for merchant transactions conducted through the e-Rupee wallet.
- Retail version operates like existing digital wallets but is backed by the RBI, ensuring stability.
RBI Governor Shaktikanta Das highlighted CBDCs' potential to enhance cross-border payments and reduce remittance costs, addressing challenges faced by many Indian expatriates. Despite a robust crypto market, India remains cautious towards private cryptocurrencies due to volatility concerns, promoting CBDCs as safer alternatives.