Canara Bank launches UPI Interoperable Digital Rupee mobile app

Canara Bank announced the launch of its UPI Interoperable Digital Rupee mobile application that allows users to pay with digital currency by scanning any merchant’s UPI QR code.

This move is a part of the Reserve Bank of India’s Central Bank Digital Currency (CBDC) pilot project.

“With the introduction of this feature, customers will be able to scan merchant UPI QR codes using the app and make the payment through digital currency. Further, this feature empowers the merchants to accept digital currency payments using their existing UPI QR codes in addition to the UPI based payments without the requirements of a separate on boarding process for CBDC,” the company said in a release.

Features of the app:

  • Load money into their CBDC Wallet by debiting their associated account.
  • Redeem digital currency and credit the amount to the associated account.
  • Transfer digital currency to anyone with a CBDC wallet.
  • Pay businesses with QR-based payments (both CBDC QR and UPI QR).
  • CBDC QR-based payments can be used to send and receive payments.

“Digital rupee will be available to Canara bank customers only on invite basis. This Digital Rupee wallet will be similar to your physical wallet but in digital form. Things you can do on Canara Digital Rupee app: Load Digital Rupee Tokens; Redeem Digital Rupee Tokens; Send & Receive Digital Rupee Tokens; Scan and Pay using Digital Rupee Tokens,” according to the AppStore page of Canara Digital Rupee app.


However, note that the app may not be available to all clients, with a notification indicating that it is only available to customers in a closed group who have received an invitation, as per the social media X.

All participating banks in the Digital Rupee pilot have taken steps to enable interoperability between the CBDC and the Unified Payments Interface (UPI). Customers can use this to scan a single QR code to make a payment using the UPI or CBDC wallet.

What is Digital e Rupee
The Reserve Bank of India introduced the Digital Rupee, sometimes referred to as eRUpee, as a new form of money. Similar to sovereign paper money, the Reserve Bank of India issues the eRupee in digital form as legal tender. Customers of Canara Bank will only be allowed to use digital rupee on an invitation-only basis.

This Digital Rupee wallet will be similar to your physical wallet but in digital form.

What does QR code interoperability mean?
According to the
HDFC Bank website, “Interoperability is a crucial factor for the success of the digital currency of India – the Digital Rupee. UPI is one of the most widely used payment methods in India. Daily transactions through UPI touch 31 crores. An interoperable QR code enables basic QR payment acceptance terminal to support Scan & Pay feature from various factors and payment options.”

Interoperability amongst QR Codes will enable frictionless interactions between customers and businesses. One QR code can be displayed by merchants to receive payments from the digital wallet or from UPI. It will improve how often people utilise the Digital Rupee in everyday transactions.