Summary: Central Bank Digital Currency (CBDC) is a digital form of Rupee and IDFC FIRST Bank provides the facility to sign up for CBDC. Check out the article below to know how to register and buy.
28 Nov 2023 by IDFC FIRST Bank
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Central Bank Digital Currency (CBDC) is a digital form of sovereign currency issued by a nation's central bank. Launched on 1st December 2022, India’s retail digital currency project is set to become one of the world’s largest CBDC pilot projects outside of China. CBDC-R (CBDC-Retail) is accessible to private sector entities, non-financial consumers, as well as businesses of all sizes. This currency is considered as a legal tender and is issued and regulated by central banks.
With the implementation of CBDCs, central banks will now be able to accelerate the system of digital payments in the country. With the reserve-backed money circulation of the traditional banking system, CBDC also offers the safety and ease of handling digital cash without any hassles. IDFC FIRST Bank is amongst the banks chosen to be a part of this pilot project, which is available to all IDFC FIRST Bank savings account holders.
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How to register for CBDC?
If you are an IDFC FIRST Bank savings account holder looking to register for theCBDCpilot project, the bank will send you an SMS on your registered mobile number or email on your registered email address, which will include a link to the e₹ (Digital Rupee) app.
Click on the link to download, and follow the step-by-step guide below to complete the sign-up/ registration process:
- Click on start registration after reading and accepting the Terms & Conditions
- Verify the SIM card for the registered mobile number
- Click on Set App PIN and authenticate with your device password (PIN, Face Unlock, or Fingerprint)
- Enter your name in the field provided and click on Choose Wallet
- Enter your PIN in the first input field. Confirm your PIN in the second input field. Click on the "tick" button on numpad to proceed
- "Wallet Successfully Created" will be displayed on your screen
- Next, click on View Wallet Address, select Wallet, and then select "Link IDFC FIRST Bank Account"
- Click on Continue to allow the app to fetch existing IDFC FIRST Bank accounts linked to the registered mobile number
- Select the account you would like to connect with the wallet
- Enter the last 6 digits and the expiry date of your Debit Card
- A "Bank Account Linked Successfully" message will appear, indicating that the sign-up/registration process is complete
- You can now use e₹ (Digital Rupee) and enjoy CBDC's benefits
Once you have successfully registered for the CBDC pilot project, you can effectively improve efficiency and accessibility in handling your payments.
To deregister from the digital wallet, follow the below-mentioned steps:
- Open the digital wallet and click on "Settings"
- Choose "Deregister Wallet"
- You will receive a PIN to verify the same
- Once the PIN is entered and submitted, your wallet will be deregistered
- Do note, you will be prompted to unload any unspent balance in the wallet before deregistering after wallet PIN verification.
How to use digital rupee in India?
For using CBDC, the first step would involve understanding how to convert existing funds from your bank account into digital rupees. Get started by completing the registration for your e-rupee wallet. Once you have successfully registered with IDFC FIRST Bank’s digital rupee app, the bank will send you a notification via SMS regarding your selection for the Closed User Group (CUG). You can then start loading money in your e-wallet from your linked bank account or from any UPI app. After this, you can start completing transactions with your digital rupee wallet.
You would now be able to use the QR codes displayed at shops/malls and engage in both P2P (person-to-person) and P2M (person-to-merchant) transactions. Since CBDCs are simply a digital version of the prevailing money distributed through banks, the e-rupee will have the same denominations as followed by paper currency. Apart from financial transactions, CBDCs can be converted into other forms of money such as bank deposits. However, do note that funds stored in the digital wallet would not be able to earn any interest.
In Conclusion
Once launched for the wider public, CBDC will complement physical currency notes and offer another mode of digital payment. Backed by the central bank, the CBDC in India will not only be safe but will also be instrumental in bolstering India's economy and improving financial inclusion. Its other benefits for users and the government includes faster payments, decreased money management cost, etc., and it will alsohelp the nation achieve a cashless economy.
Disclaimer
The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circ*mstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.
The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirstbank.com for latest updates.
