Recently, the credit card managing platform, CRED has launched the beta version of its e₹ wallet.
Reportedly, it is developed in collaboration with the Reserve Bank of India (RBI) and YES BANK as the sponsor bank.
This holds a great significance as this initiative marks the implementation of RBI’s Central Bank Digital Currency (CBDC) on a fintech platform.
How Does CRED e₹ Wallet Works?
With the help of the e₹ wallet, CRED members, who have been whitelisted for the beta, send money to UPI-linked bank accounts and other CBDC wallets.
Further, the members need to complete the video KYC and then load their wallet via UPI to use the wallet.
Please note here that the transactions are limited to ₹10,000 per transfer, with a daily limit of ₹50,000.
Moving ahead, this wallet can hold up to ₹1 lakh in addition to that merchant transactions are processed at no additional cost.
In its future updates, they are expecting to introduce features such as programmable merchant payments, CRED Pay integration, and PIN-less transactions for amounts below ₹500.
In addition to this, this feature will be expanded to all CRED members in the coming months.
Introducing A Digital Currency
It appears that this launch is part of India’s ongoing efforts to introduce a digital currency as a form of sovereign money.
In addition to this, this currency is intended to reduce cash circulation, supporting digital adoption further promoting financial inclusion.
For this YES BANK acts as the sponsor bank for the CBDC initiative, facilitating the issuance of CBDC tokens from RBI to CRED.
The Managing Director and CEO of YES BANK, Prashant Kumar emphasised regarding the bank’s role in supporting the secure integration of the e₹ wallet.
Moving ahead, RBI has expressed their plans to make CBDC-Retail accessible to a broader range of users.
They wanted to do this by enabling non-bank payment system operators to offer CBDC wallets.
They are expected to test the resiliency of the CBDC platform which can expand access to digital currency.
Presently, this e₹ wallet is available in a beta version and it will be accessible to more users in the coming future.
