Short Article

20-09-2023 | 12:12 PM

UPI QR Code-Central Bank Digital Currency interoperability

Several banks are enabling the interoperability of Unified Payments Interface’s (UPI) Quick Response (QR) code with their Central Bank Digital Currency(CBDC) or e application.

Key Highlights:

• Interoperability of UPI with the digital rupee means all UPI QR codes are compatible with CBDC apps.
• Initially, when the pilot for the retail digital rupee was launched, the e₹-R users had to scan a specific QR code to undertake transactions.
• However, with the interoperability of the two, payments can now be made using a single QR code.
• A QR code consists of black squares arranged in a square grid on a white background, which can be read by an imaging device such as a camera. QR contains information about the item to which it is attached.
• QR code is an alternate contactless channel of payments. It allows merchants or businesses to accept payments from their customers directly into their bank accounts.