CRED Rolls Out E-Rupee Wallet, First Fintech To Offer Access To CBDC

CRED Rolls Out E-Rupee Wallet, First Fintech To Offer Access To CBDC

SUMMARY

CRED founder Kunal Shah has announced the launch of the beta version of its CRED e₹ wallet in collaboration with the Reserve Bank of India (RBI)

This marks the introduction of India's Central Bank Digital Currency (CBDC) into the fintech space

Taking to a post on X,  Shah said, “CRED e₹ wallet beta is live. Not just another fintech play; CBDC is a fundamental shift in how India moves money: instant, programmable, RBI backed”

Cred founder Kunal Shah has announced the launch of the beta version of its CRED e₹ wallet in collaboration with the Reserve Bank of India (RBI).

This marks the introduction of India’s Central Bank Digital Currency (CBDC) into the fintech space. 

Taking to a post on X,  Shah said, “CRED e₹ wallet beta is live. Not just another fintech play; CBDC is a fundamental shift in how India moves money: instant, programmable, RBI backed.”

This comes after RBI last year in April proposed to extend the CBDC accessibility to a broader user base. The move then opened the doors for non-bank payment operators to make CBDC transactions which were only limited to the banks earlier. 

As per RBI data, only 15 banks are offering CBDC wallets which include SBI, ICICI Bank, IDFC First Bank, YES BANK, HDFC Bank, Kotak Mahindra Bank, and Axis Bank, among others. 

Digital Rupee or e₹, is India’s CBDC which is issued by the Reserve Bank of India (RBI) in digital form. It offers features similar to physical cash like convenience of use, guarantee of RBI, finality of settlement, etc. This e₹ is stored in the user’s digital wallet and can be used to receive/send money, and/or make payment for transactions, just like any physical ₹ note.

For this  e₹ wallet offering, CRED has partnered with YES BANK as the sponsor bank, which will facilitate the issuance of CBDC tokens from RBI to CRED, a non-banking payment service operator (NBPSO).

YES BANK’s MD & CEO Prashant Kumar, said, “YES BANK is proud to partner with CRED in this pioneering venture under RBI’s guidance. As the sponsor bank, we are committed to enabling secure and efficient integration of the e-rupee wallet, setting new benchmarks for digital payments in India.” 

CRED members whitelisted for the beta can pay UPI-linked bank accounts, and send/receive money to other CBDC wallets. The onboarding process will require the users to complete video KYC, after which they can create and load their e₹ wallets via UPI.

The transaction cap for this wallet is at INR 10,000 per transfer ( INR 50,000 daily limit) while the storage limit is up to INR 1 lakh, with zero-cost merchant transactions. 

“Future updates will enable programmable merchant payments, CRED Pay integration and PIN-less transactions below INR 500, with access for all CRED members in the coming months,” CRED said in a statement. 

The development comes at a time when CRED is diversifying its offerings. Last month, Inc42 reported that the company is piloting a new feature which allows users of the app to use CRED Coins at offline stores and for online purchases. Besides this, it recently forayed into the insurance space in partnership with three insurance companies through its vehicle management platform CRED garage.

In December, Bengaluru police arrested an Axis Bank manager and three others from Gujarat who allegedly embezzled funds worth INR 12.5 Cr from the coffers of Dreamplug Paytech Solutions, the parent company of fintech unicorn CRED.

On the financial front, CRED’s operating revenue jumped 71% to INR 2,397 Cr in the financial year 2023-24 (FY24) from INR 1,400 Cr in the previous fiscal year. However, its net loss climbed to INR 1,644 Cr in the same fiscal year, up 22% from INR 1,347 Cr in FY23.

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